Southwest Gas Holdings Inc (SWX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,869,900 | 13,196,600 | 12,765,300 | 8,735,850 | 8,170,050 |
| Total stockholders’ equity | US$ in thousands | 3,310,040 | 3,058,760 | 2,953,820 | 2,674,950 | 2,505,910 |
| Financial leverage ratio | 3.59 | 4.31 | 4.32 | 3.27 | 3.26 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,869,900K ÷ $3,310,040K
= 3.59
The financial leverage ratio of Southwest Gas Holdings Inc has exhibited fluctuations over the past five years. The ratio decreased from 3.26 in 2019 to 3.27 in 2020, showing relatively stable leverage levels. However, there was a significant increase in leverage in 2021, reaching 4.32, followed by a slight decline to 4.31 in 2022. In 2023, the financial leverage ratio decreased to 3.59, indicating a reduction in the company's reliance on debt to finance its operations. Overall, the company's leverage position has shown some variability, with recent years reflecting efforts to manage and potentially reduce financial risk associated with debt levels.
Peer comparison
Dec 31, 2023