Kaiser Aluminum Corporation (KALU)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.46	0.46	0.46	0.46	0.45	0.44	0.42	0.41	0.43	0.43	0.43	0.39	0.45	0.45	0.45	0.32	0.32	0.26	0.26	0.26
Debt-to-capital ratio	0.61	0.62	0.62	0.63	0.62	0.62	0.61	0.59	0.60	0.59	0.59	0.53	0.53	0.54	0.54	0.41	0.40	0.33	0.33	0.33
Debt-to-equity ratio	1.59	1.62	1.65	1.70	1.64	1.62	1.60	1.46	1.50	1.44	1.44	1.14	1.14	1.16	1.16	0.68	0.67	0.49	0.50	0.50
Financial leverage ratio	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	2.08	1.90	1.91	1.94

The solvency ratios of Kaiser Aluminum Corp indicate the company's ability to meet its long-term obligations and manage its debt levels effectively.

1. Debt-to-assets ratio: This ratio remained relatively stable around 0.46 to 0.47 over the past year. It signifies that roughly 46% to 47% of the company's assets are financed by debt. The consistent ratio indicates a balanced mix of debt and assets.

2. Debt-to-capital ratio: The trend shows a consistent debt-to-capital ratio of 0.62 to 0.63, implying that approximately 62% to 63% of the company's capital structure is debt-financed. The stability of this ratio suggests a sustainable leverage position.

3. Debt-to-equity ratio: The ratios range from 1.46 to 1.70, showing the varying extent to which debt funds the company's operations compared to equity. A higher ratio indicates higher financial risk and dependency on debt financing.

4. Financial leverage ratio: This ratio fluctuates from 3.48 to 3.79, reflecting the company's total assets' financing contributed by debt. The variability in this ratio over time may indicate changes in the capital structure and financial risk profile.

Overall, Kaiser Aluminum Corp maintains a moderate level of debt with consistent solvency ratios, suggesting a balanced approach to capital structure management and a reasonable ability to meet its financial obligations.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	2.20	1.27	1.22	0.41	0.22	1.01	1.07	0.66	0.52	0.56	0.42	1.09	1.95	1.42	2.67	4.25	4.27	6.58	6.42	6.54

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. In the case of Kaiser Aluminum Corp, the interest coverage ratio has been fluctuating over the past eight quarters. The ratio ranged from a low of 0.48 in Q1 2023 to a high of 2.23 in Q4 2023.

A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which can be a cause for concern as it may signal financial distress or liquidity issues. However, Kaiser Aluminum Corp's interest coverage ratio has generally been above 1 in recent quarters, indicating that the company has been able to meet its interest obligations with its operating income.

It's important to note that a higher interest coverage ratio is generally preferred as it implies greater financial stability and a lower risk of default on debt payments. Kaiser Aluminum Corp's interest coverage ratio has shown some improvement in the most recent quarters, which may reflect better profitability or reduced interest expenses. However, the fluctuating nature of the ratio suggests that the company's interest coverage may be sensitive to changes in its operating income or interest costs.