Kaiser Aluminum Corporation (KALU)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.46 | 0.45 | 0.43 | 0.45 | 0.32 |
| Debt-to-capital ratio | 0.61 | 0.62 | 0.60 | 0.53 | 0.40 |
| Debt-to-equity ratio | 1.59 | 1.64 | 1.50 | 1.14 | 0.67 |
| Financial leverage ratio | 3.48 | 3.63 | 3.50 | 2.55 | 2.08 |
Kaiser Aluminum Corp's solvency ratios show a consistent trend over the past five years. The debt-to-assets ratio has slightly increased from 0.32 in 2019 to 0.46 in 2023, indicating that the company's reliance on debt to finance its assets has grown. However, the levels are still within a reasonable range. The debt-to-capital ratio has also shown a consistent increase over the years, reaching 0.62 in 2023 from 0.40 in 2019. This implies that a larger portion of the company's capital structure is made up of debt.
The debt-to-equity ratio has fluctuated during the period but has generally increased from 0.67 in 2019 to 1.60 in 2023. This indicates that the company's debt levels relative to its equity have risen significantly. The financial leverage ratio has shown a similar trend, increasing from 2.08 in 2019 to 3.48 in 2023. This suggests that the company is more leveraged, which could potentially pose higher risks if not managed effectively.
Overall, Kaiser Aluminum Corp's solvency ratios indicate a growing reliance on debt to finance its operations and investments. While moderate debt levels are common in the industry, the company should monitor its debt levels closely to ensure they remain sustainable and manageable in the long run.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.20 | 0.22 | 0.52 | 1.95 | 4.27 |
The interest coverage ratio for Kaiser Aluminum Corp has fluctuated over the past five years. In 2023, the interest coverage ratio improved to 2.23, indicating that the company's earnings before interest and taxes (EBIT) were 2.23 times its interest expense for the year. This signifies that Kaiser Aluminum Corp had sufficient earnings to cover its interest obligations comfortably.
In contrast, the interest coverage ratio was at its lowest in 2022 at 0.57, indicating a significant decline in the company's ability to cover its interest payments with its operating income. However, the ratio rebounded in 2023, although it remained lower than the levels seen in 2020 and 2019.
Overall, Kaiser Aluminum Corp's interest coverage ratio has shown variability in recent years, with fluctuations potentially reflective of changes in the company's earnings performance and interest obligations. It is essential for investors and creditors to monitor this ratio to assess the company's ability to meet its debt obligations from operating earnings.