KBR Inc (KBR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.38 | 0.38 | 0.33 | 0.33 | 0.32 | 0.25 | 0.26 | 0.24 | 0.25 | 0.32 | 0.32 | 0.33 | 0.30 | 0.27 | 0.29 | 0.28 | 0.28 | 0.25 | 0.21 | 0.21 |
| Debt-to-capital ratio | 0.64 | 0.63 | 0.58 | 0.57 | 0.57 | 0.49 | 0.50 | 0.46 | 0.46 | 0.52 | 0.52 | 0.54 | 0.53 | 0.52 | 0.52 | 0.49 | 0.50 | 0.44 | 0.40 | 0.39 |
| Debt-to-equity ratio | 1.74 | 1.70 | 1.36 | 1.31 | 1.30 | 0.98 | 1.01 | 0.84 | 0.85 | 1.10 | 1.10 | 1.20 | 1.12 | 1.06 | 1.08 | 0.96 | 1.00 | 0.78 | 0.66 | 0.65 |
| Financial leverage ratio | 4.59 | 4.51 | 4.11 | 3.99 | 4.02 | 3.84 | 3.89 | 3.49 | 3.44 | 3.43 | 3.48 | 3.60 | 3.72 | 3.92 | 3.76 | 3.45 | 3.61 | 3.14 | 3.10 | 3.13 |
The solvency ratios of KBR Inc provide insights into the company's ability to meet its long-term financial obligations and manage its debt levels.
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. KBR Inc's debt-to-assets ratio has been increasing gradually from 0.21 in March 2020 to 0.38 in December 2024. An increasing trend in this ratio suggests that a larger portion of the company's assets is funded by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio measures the proportion of a company's capital structure that is financed by debt. KBR Inc's debt-to-capital ratio has also shown an increasing trend over the years, reaching 0.64 in December 2024. This signifies a higher reliance on debt to fund the company's operations and investments.
3. Debt-to-equity ratio: The debt-to-equity ratio indicates the relative proportion of debt and equity used to finance a company's assets. KBR Inc's debt-to-equity ratio has fluctuated over the years, peaking at 1.74 in December 2024. A high debt-to-equity ratio could indicate potential financial risk due to significant debt obligations.
4. Financial leverage ratio: The financial leverage ratio provides an indication of the company's total debt relative to its equity. KBR Inc's financial leverage ratio has shown an increasing trend, hitting 4.59 in December 2024. A high financial leverage ratio implies a larger proportion of debt in the company's capital structure, increasing the financial risk.
Overall, the solvency ratios of KBR Inc demonstrate an increasing trend in debt levels and financial leverage over the years, which could raise concerns about the company's ability to manage its debt obligations effectively in the long term. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.55 | 4.54 | 3.65 | -0.32 | -0.48 | -0.03 | 0.88 | 5.84 | 4.24 | 4.29 | 4.12 | 1.25 | 2.72 | 1.80 | 1.74 | 2.87 | 0.39 | 0.90 | 1.01 | 2.03 |
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates a greater ability to meet interest obligations.
In Q1 2020, KBR Inc had an interest coverage of 2.03, indicating it could cover its interest expenses 2.03 times over. However, this ratio dropped to 1.01 in Q2 2020 and further decreased to 0.90 in Q3 2020, which might have raised concerns about its ability to cover interest payments.
By the end of 2020, the interest coverage ratio improved slightly to 0.39, but it was still very low, suggesting a potential strain on the company's finances. The trend reversed in Q1 2021, with the ratio increasing to 2.87 and demonstrating a better ability to meet interest obligations.
Throughout 2021 and early 2022, the interest coverage ratio remained relatively stable, showing values between 1.74 and 4.12, indicating a moderate to strong ability to cover interest expenses.
In Q1 2023, the interest coverage ratio saw a significant spike to 5.84, reflecting a strong improvement in the company's ability to pay interest on its debt. However, this improvement was short-lived as the ratio dropped to 0.88 in Q2 2023, turning negative in Q3 2023 and Q4 2023, which indicates that the company may have had difficulty meeting its interest obligations during that period.
The ratio recovered in Q1 2024 to -0.32, showing a slightly improved position. By Q2 2024, the interest coverage ratio improved significantly to 3.65, and for the rest of 2024, it remained relatively stable between 4.54 and 4.55, highlighting a strong ability to cover interest payments.
Overall, KBR Inc's interest coverage ratio has shown variability over the years, with periods of strength and weakness. It is essential for the company to maintain a healthy interest coverage ratio to ensure its long-term financial stability and ability to meet debt obligations.