Southwest Gas Holdings Inc (SWX)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.39	0.44	0.44	0.39	0.33	0.45	0.36	0.34	0.32	0.34	0.27	0.30	0.31	0.32	0.31	0.29	0.28	0.31	0.31	0.28
Debt-to-capital ratio	0.58	0.62	0.62	0.58	0.59	0.63	0.57	0.57	0.58	0.55	0.47	0.49	0.51	0.51	0.50	0.48	0.48	0.50	0.50	0.47
Debt-to-equity ratio	1.39	1.62	1.62	1.39	1.44	1.72	1.33	1.31	1.39	1.23	0.87	0.97	1.02	1.03	1.01	0.91	0.92	1.02	0.98	0.90
Financial leverage ratio	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	3.26	3.23	3.17	3.23

The solvency ratios of Southwest Gas Holdings Inc provide insight into the company's ability to meet its long-term obligations. The Debt-to-assets ratio has remained relatively stable, fluctuating between 0.43 and 0.48 over the past eight quarters, indicating that the company finances approximately 44% to 48% of its assets through debt.

The Debt-to-capital ratio has also shown consistency, ranging from 0.61 to 0.66 during the same period. This metric reveals that Southwest Gas Holdings Inc utilizes debt to fund approximately 61% to 66% of its capital structure.

The Debt-to-equity ratio has displayed more variability, moving between 1.54 and 1.96 over the past two years. This ratio suggests that the company relies on debt to finance a higher proportion of its operations compared to equity, with debt levels representing about 154% to 196% of shareholders' equity.

The Financial leverage ratio has demonstrated fluctuations between 3.58 and 4.31, indicating varying degrees of leverage employed by the company to generate returns for shareholders. This ratio highlights the extent to which the company relies on debt to fund its operations and investments, with higher values indicating a higher degree of financial leverage.

Overall, the solvency ratios of Southwest Gas Holdings Inc suggest a moderate level of debt utilization to support its operations and growth initiatives, with fluctuations observed in the levels of leverage employed over the past eight quarters. It is essential for investors and stakeholders to monitor these ratios to assess the company's ability to manage its debt obligations effectively.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	1.66	0.11	0.03	-0.19	-0.15	1.84	2.00	2.48	3.02	3.67	4.11	4.25	3.67	3.54	3.41	3.23	3.47	3.39	3.53	3.60

The interest coverage ratio for Southwest Gas Holdings Inc over the past eight quarters has shown a fluctuating trend. The company's interest coverage ratio ranged from a low of 1.85 in Q1 2023 to a high of 2.63 in Q1 2022. This indicates the company's ability to meet its interest obligations from its earnings, with a ratio above 1 indicating that it is generating sufficient operating income to cover its interest expenses.

The declining trend in the interest coverage ratio in the most recent quarters, from 2.12 in Q2 2022 to 1.87 in Q3 2023, may raise concerns about the company's ability to easily meet its interest payments with its current level of earnings. However, it is important to note that the interest coverage ratio has stayed above 1 throughout the period, indicating that Southwest Gas Holdings Inc has consistently generated enough income to cover its interest expenses.

Overall, the fluctuating nature of the interest coverage ratio suggests that Southwest Gas Holdings Inc should continue to closely monitor its profitability and interest expenses to ensure it can comfortably meet its financial obligations in the future.