Kaiser Aluminum Corporation (KALU)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,039,800 | 1,038,100 | 1,036,300 | 838,100 | 492,600 |
| Total assets | US$ in thousands | 2,267,400 | 2,288,800 | 2,422,400 | 1,864,700 | 1,526,200 |
| Debt-to-assets ratio | 0.46 | 0.45 | 0.43 | 0.45 | 0.32 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,039,800K ÷ $2,267,400K
= 0.46
The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. For Kaiser Aluminum Corp, the trend in the debt-to-assets ratio over the past five years shows some fluctuation. The ratio increased from 0.32 in 2019 to 0.45 in 2020, remained relatively stable in 2021 at 0.43, increased slightly to 0.45 in 2022, and then increased again to 0.46 in 2023.
A higher debt-to-assets ratio generally indicates that a company is more reliant on debt to finance its assets, potentially increasing financial risk. However, it is important to consider industry benchmarks and the company's specific circumstances when evaluating the significance of this ratio.
Overall, the increasing trend in Kaiser Aluminum Corp's debt-to-assets ratio over the past few years suggests a growing reliance on debt to finance its assets. Further analysis of the company's debt structure and management's strategy for debt repayment and capital allocation would provide additional insights into the company's financial health and risk management practices.
Peer comparison
Dec 31, 2023