Kaiser Aluminum Corporation (KALU)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 107,200 | 104,900 | 95,700 | 114,100 | 103,200 | 59,800 | 44,500 | 5,400 | -3,500 | 63,200 | 80,200 | 60,400 | 52,200 | 26,600 | 20,000 | 60,900 | 89,700 | 61,100 | 88,200 | 103,600 |
| Interest expense (ttm) | US$ in thousands | 43,700 | 41,800 | 42,500 | 43,500 | 43,900 | 47,200 | 47,900 | 48,000 | 48,300 | 48,800 | 49,200 | 49,400 | 49,500 | 49,400 | 49,000 | 47,100 | 40,900 | 36,000 | 29,700 | 25,000 |
| Interest coverage | 2.45 | 2.51 | 2.25 | 2.62 | 2.35 | 1.27 | 0.93 | 0.11 | -0.07 | 1.30 | 1.63 | 1.22 | 1.05 | 0.54 | 0.41 | 1.29 | 2.19 | 1.70 | 2.97 | 4.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $107,200K ÷ $43,700K
= 2.45
The interest coverage ratio of Kaiser Aluminum Corporation has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio, representing the company's ability to cover its interest expenses with its earnings, started at a relatively healthy 4.14 on March 31, 2020. However, it progressively declined, reaching a low of 0.41 on June 30, 2021. Subsequently, there was a slight recovery, with the ratio improving to 2.25 on June 30, 2024, but still remaining below the initial level. The company experienced some volatility in its interest coverage during this period, suggesting variations in its ability to generate sufficient earnings to meet its interest obligations. The negative ratio reported on December 31, 2022, indicates that the company's earnings were insufficient to cover its interest expenses during that period. Overall, the trend in Kaiser Aluminum Corporation's interest coverage ratio reflects fluctuations in its financial performance and ability to manage its debt effectively.
Peer comparison
Dec 31, 2024