National Fuel Gas(Nfg) Financials: Financial Leverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - financial leverage
This chart shows the historical trend of financial leverage for NFG compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Financial Leverage
Definition: Financial leverage tells you how much borrowed money the company uses to boost its size and profits. Using leverage can help a business grow faster, but it also increases pressure if sales slow down. Moderate leverage is common and often healthy. Excessive leverage can be dangerous, especially during tough economic times.
Interpretation:
• In '2021', NFG's financial leverage was 4.18, indicating how much debt is used to finance assets. Industry average for Oil/Gas Transmission in '2021' stood at 3.09.
• In '2022', NFG's financial leverage was 3.97, indicating how much debt is used to finance assets. The decrease since '2021' reflects improving financial health. Industry average for Oil/Gas Transmission in '2022' stood at 3.12. Industry average increased by 0.03 compared to previous year.
• In '2023', NFG's financial leverage was 3.21, indicating how much debt is used to finance assets. The decrease since '2022' reflects improving financial health. Industry average for Oil/Gas Transmission in '2023' stood at 3.16. Industry average increased by 0.05 compared to previous year.
• In '2024', NFG's financial leverage was 2.86, indicating how much debt is used to finance assets. The decrease since '2023' reflects improving financial health. Industry average for Oil/Gas Transmission in '2024' stood at 3.88. Industry average increased by 0.71 compared to previous year.
Overall, NFG's financial leverage has been volatile but showed a downward trend over the past 4 years.
Formula: Financial Leverage = Average Total Assets / Average Shareholders' Equity
Good Range: 1 to 3 common; above 3 may indicate high leverage risk.