Southwest Gas Holdings Inc (SWX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,023,800 | 11,875,000 | 11,985,300 | 11,888,000 | 11,869,900 | 11,836,300 | 11,950,900 | 11,810,200 | 13,196,600 | 13,102,600 | 12,923,000 | 13,249,500 | 12,765,300 | 10,369,600 | 9,039,020 | 8,928,640 | 8,735,850 | 8,429,660 | 8,426,040 | 8,093,220 |
| Total stockholders’ equity | US$ in thousands | 3,504,190 | 3,455,390 | 3,492,760 | 3,356,240 | 3,310,040 | 3,238,740 | 3,262,830 | 3,296,160 | 3,058,760 | 3,412,920 | 3,458,850 | 3,489,080 | 2,953,820 | 2,909,820 | 2,846,880 | 2,773,720 | 2,674,950 | 2,619,240 | 2,611,300 | 2,547,900 |
| Financial leverage ratio | 3.43 | 3.44 | 3.43 | 3.54 | 3.59 | 3.65 | 3.66 | 3.58 | 4.31 | 3.84 | 3.74 | 3.80 | 4.32 | 3.56 | 3.18 | 3.22 | 3.27 | 3.22 | 3.23 | 3.18 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,023,800K ÷ $3,504,190K
= 3.43
The financial leverage ratio of Southwest Gas Holdings Inc has shown some fluctuations over the past few years. It stood at around 3.18 in March 2020 and gradually increased to 4.32 by December 2021. This increase indicates that the company's reliance on debt to finance its operations and growth has been growing during this period.
Subsequently, the ratio decreased to 3.54 by March 2024. This reduction suggests that the company might have taken actions to reduce its debt levels relative to its equity, possibly aiming to improve its financial stability and lower its overall financial risk.
Overall, Southwest Gas Holdings Inc's financial leverage ratio has displayed some variability, reflecting changes in the company's capital structure and debt management strategies over time. A decreasing trend in the ratio indicates a potential improvement in the company's financial health and risk position, while an increasing trend signifies higher leverage and associated risks.
Peer comparison
Dec 31, 2024