Kaiser Aluminum Corporation (KALU)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 652,200 | 631,200 | 692,500 | 732,400 | 733,900 |
| Debt-to-capital ratio | 0.61 | 0.62 | 0.60 | 0.53 | 0.40 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,039,800K ÷ ($1,039,800K + $652,200K)
= 0.61
The debt-to-capital ratio of Kaiser Aluminum Corp has shown an upward trend over the past five years, increasing from 0.40 in 2019 to 0.62 in both 2022 and 2023. This indicates that the company has been relying more heavily on debt financing in relation to its total capital structure. The gradual increase in the ratio suggests that Kaiser Aluminum Corp may have been taking on more debt to fund its operations or expansions.
A higher debt-to-capital ratio may imply higher financial risk for the company as it signifies a larger proportion of debt relative to equity in its capital structure. It could also indicate that Kaiser Aluminum Corp is more leveraged, potentially leading to increased interest payments and financial obligations.
Overall, monitoring the debt-to-capital ratio trend is crucial for investors and creditors to assess the company's financial health and risk profile. It is essential for Kaiser Aluminum Corp to carefully manage its debt levels to maintain a balanced capital structure and sustainable financial stability.
Peer comparison
Dec 31, 2023