Kaiser Aluminum Corporation (KALU)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.47 | 3.48 | 3.63 | 3.50 | 2.55 |
The solvency ratios of Kaiser Aluminum Corporation indicate a strong financial position in terms of its ability to meet its long-term obligations.
1. Debt-to-assets ratio: The company consistently maintains a debt-to-assets ratio of 0.00 across the years 2020 to 2024. This suggests that the company has no debt relative to its total assets, indicating a low financial risk and a healthy balance sheet.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 for all the years analyzed. This indicates that the company's debt as a proportion of its total capital structure is negligible, further reinforcing the company's strong financial position.
3. Debt-to-equity ratio: The debt-to-equity ratio is also reported at 0.00 for each year from 2020 to 2024. This implies that the company's debt levels are minimal compared to its equity, indicating a low reliance on debt financing and a lower financial risk.
4. Financial leverage ratio: The financial leverage ratio shows a slight increase from 2.55 in 2020 to 3.47 in 2024. While this indicates a rise in leverage, the overall level is still reasonable and does not raise significant concerns regarding the company's ability to meet its financial obligations.
In conclusion, based on the solvency ratios analyzed, Kaiser Aluminum Corporation demonstrates a solid financial position with minimal debt obligations relative to its assets, capital, and equity. The slight increase in the financial leverage ratio over the years is not alarming and overall, the company appears to be in a stable financial position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.45 | 2.20 | 0.51 | 1.20 | 2.06 |
Interest coverage ratio is a key financial metric that indicates a company's ability to meet interest obligations on its outstanding debt. Looking at the data provided for Kaiser Aluminum Corporation, we observe fluctuations in the interest coverage ratio over the past five years.
1. December 31, 2020: The interest coverage ratio was 2.06, indicating that the company generated 2.06 times the earnings needed to cover its interest expenses. This suggests a relatively healthy ability to meet interest payments.
2. December 31, 2021: The interest coverage ratio declined to 1.20, reflecting a decrease in the company's ability to cover interest expenses. A lower ratio may indicate increased financial risk and potential difficulties in meeting interest obligations.
3. December 31, 2022: The interest coverage ratio further decreased to 0.51, signaling a significant decline in the company's ability to cover interest payments. A ratio below 1 indicates that the company is not generating enough earnings to cover its interest expenses, raising concerns about its financial stability.
4. December 31, 2023: The interest coverage ratio improved to 2.20, showing a recovery in the company's ability to meet interest obligations. This increase suggests a positive trend in the company's financial performance.
5. December 31, 2024: The interest coverage ratio rose to 2.45, indicating that the company continued to strengthen its ability to cover interest expenses. A higher ratio is generally favorable as it reflects a healthier financial position and lower risk of default.
In summary, Kaiser Aluminum Corporation's interest coverage ratio fluctuated over the past five years, with periods of improvement and decline. It is crucial for investors and stakeholders to closely monitor these fluctuations to assess the company's financial health and ability to manage its debt obligations effectively.