Kadant Inc (KAI)
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 | 1,430,340 | 1,489,340 | 1,456,030 | 1,409,430 | 1,175,660 | 1,154,100 | 1,161,420 | 1,169,140 | 1,149,880 | 1,106,850 | 1,124,000 | 1,144,270 | 1,132,210 | 1,133,130 | 1,029,480 | 935,665 | 927,571 | 913,891 | 915,292 | 909,048 |
| Total stockholders’ equity | US$ in thousands | 847,127 | 851,733 | 807,711 | 782,687 | 773,702 | 731,652 | 710,871 | 682,364 | 653,849 | 608,049 | 604,152 | 597,855 | 563,936 | 541,887 | 529,235 | 502,588 | 495,359 | 460,941 | 438,721 | 422,774 |
| Financial leverage ratio | 1.69 | 1.75 | 1.80 | 1.80 | 1.52 | 1.58 | 1.63 | 1.71 | 1.76 | 1.82 | 1.86 | 1.91 | 2.01 | 2.09 | 1.95 | 1.86 | 1.87 | 1.98 | 2.09 | 2.15 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,430,340K ÷ $847,127K
= 1.69
The financial leverage ratio of Kadant Inc has exhibited fluctuations over the observed periods, ranging from 1.52 to 2.15. The trend indicates a decline in leverage from March 31, 2020, to December 31, 2023, suggesting a reduction in the company's reliance on debt financing to support its operations and growth. This downward trend could signify improved financial stability and lower risk associated with debt obligations.
However, there was a notable increase in the financial leverage ratio from December 31, 2023, to March 31, 2024. This upturn may indicate a recent shift towards higher debt levels relative to equity, potentially signaling a strategic decision to leverage debt for future investments or expansion opportunities.
Overall, monitoring changes in the financial leverage ratio is crucial for assessing Kadant Inc's capital structure and risk profile. It is essential to continue observing future developments to gauge the company's approach to capital management and assess the potential impact on its financial health and operations.
Peer comparison
Dec 31, 2024