Kaiser Aluminum Corporation (KALU)
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 | 2,314,900 | 2,311,400 | 2,315,700 | 2,299,800 | 2,267,400 | 2,268,100 | 2,267,500 | 2,329,700 | 2,288,800 | 2,373,600 | 2,461,700 | 2,541,400 | 2,422,400 | 2,437,200 | 2,414,500 | 2,152,800 | 1,864,700 | 1,847,000 | 1,848,400 | 1,553,100 |
| Total stockholders’ equity | US$ in thousands | 668,000 | 667,000 | 662,000 | 664,900 | 652,200 | 640,700 | 638,100 | 635,600 | 631,200 | 642,000 | 650,000 | 708,200 | 692,500 | 721,000 | 720,700 | 735,000 | 732,400 | 719,300 | 718,800 | 721,100 |
| Financial leverage ratio | 3.47 | 3.47 | 3.50 | 3.46 | 3.48 | 3.54 | 3.55 | 3.67 | 3.63 | 3.70 | 3.79 | 3.59 | 3.50 | 3.38 | 3.35 | 2.93 | 2.55 | 2.57 | 2.57 | 2.15 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,314,900K ÷ $668,000K
= 3.47
The financial leverage ratio of Kaiser Aluminum Corporation has shown an increasing trend from 2.15 as of March 31, 2020, to 3.47 as of December 31, 2024. This indicates that the company has been relying more on debt financing over this period. A higher financial leverage ratio suggests a greater proportion of debt in the company's capital structure, which can amplify both returns and risks for shareholders.
The consistent rise in the financial leverage ratio over the years may raise concerns about the company's ability to meet its debt obligations, especially in times of economic uncertainty or adverse market conditions. Investors and creditors closely monitor this ratio as it reflects the level of financial risk a company carries. It is important for Kaiser Aluminum Corporation to carefully manage its debt levels to maintain a healthy balance between debt and equity financing and ensure long-term financial stability.
Peer comparison
Dec 31, 2024