Southwest Gas Holdings Inc (SWX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data for Southwest Gas Holdings Inc, the solvency ratios depict a strong financial position with consistently low levels of debt relative to the company's assets, capital, and equity.
1. Debt-to-assets ratio remains consistently at 0.00 from March 2020 to December 2024. This indicates that the company has not relied heavily on debt financing to fund its operations, which is a positive sign for its solvency.
2. Debt-to-capital ratio also shows a constant 0.00 from March 2020 to December 2024. This ratio further confirms that the company's capital structure is not heavily reliant on debt, which limits financial risk.
3. Debt-to-equity ratio maintains a stable 0.00 throughout the period under consideration. This implies that Southwest Gas Holdings Inc has not taken on significant debt in relation to its shareholders' equity, reflecting a healthy balance between debt and equity financing.
4. The financial leverage ratio fluctuates but generally remains within a reasonable range from 3.18 to 4.32 during the period. While there are slight changes over time, the ratio overall indicates that the company has effectively managed its debt levels in relation to its equity and is not overly leveraged.
In conclusion, the solvency ratios suggest that Southwest Gas Holdings Inc has maintained a conservative approach to its capital structure, with low debt levels in comparison to its assets, capital, and equity. This prudent financial management bodes well for the company's ability to meet its financial obligations and indicates a solid foundation for sustainable growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.73 | 1.59 | 1.57 | 1.61 | 1.74 | 0.24 | 0.20 | 0.04 | -0.13 | 1.83 | 2.01 | 2.47 | 2.99 | 3.59 | 3.97 | 3.98 | 3.58 | 3.46 | 3.35 | 2.61 |
The interest coverage ratio of Southwest Gas Holdings Inc has shown varying trends over the past few years. From March 2020 to June 2022, the company's interest coverage remained relatively stable at levels above 2, indicating that the company was generating enough operating income to cover its interest expenses. However, starting from September 2022, the interest coverage ratio began to decline steadily, reaching negative levels by December 2022, which could be a cause for concern as it suggests that the company's operating income was insufficient to cover its interest obligations during that period.
Subsequently, there was a slight improvement in the interest coverage ratio in the following quarters, showing a positive trend from March 2023 to December 2024. While the ratio remained below the levels observed in the earlier years, the positive trend indicates some improvement in the company's ability to cover its interest expenses with operating income.
Overall, the fluctuating interest coverage ratio of Southwest Gas Holdings Inc reflects the company's changing financial health and its ability to manage interest obligations during different periods. It would be important for stakeholders to closely monitor this ratio to ensure the company's financial stability and ability to meet its debt obligations.