Keurig Dr Pepper Inc (KDP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.19 | 0.21 | 0.23 | 0.22 |
| Debt-to-capital ratio | 0.35 | 0.28 | 0.31 | 0.32 | 0.32 |
| Debt-to-equity ratio | 0.53 | 0.39 | 0.44 | 0.46 | 0.47 |
| Financial leverage ratio | 2.20 | 2.03 | 2.06 | 2.03 | 2.09 |
The solvency ratios of Keurig Dr Pepper Inc indicate the company's ability to meet its long-term financial obligations and its overall financial leverage.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. Keurig Dr Pepper Inc's debt-to-assets ratio has remained relatively stable over the years, ranging from 0.19 to 0.24. This suggests that a significant portion of the company's assets is funded through debt.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure that is financed by debt. Keurig Dr Pepper Inc's debt-to-capital ratio has shown a slight fluctuation between 0.28 and 0.35 over the years, indicating that debt plays a significant role in the company's capital structure.
3. Debt-to-equity ratio: This ratio measures the extent to which the company's operations are financed by debt relative to equity. Keurig Dr Pepper Inc's debt-to-equity ratio has ranged from 0.39 to 0.53, showing that the company has been relying more on debt financing compared to equity financing in recent years.
4. Financial leverage ratio: This ratio indicates the proportion of the company's assets that are financed by debt. Keurig Dr Pepper Inc's financial leverage ratio has fluctuated between 2.03 and 2.20, suggesting that the company has a moderate level of leverage in its capital structure.
Overall, these solvency ratios suggest that Keurig Dr Pepper Inc has maintained a reasonable balance between debt and equity financing, with a significant reliance on debt to support its operations and investments. Investors and creditors may closely monitor these ratios to assess the company's ability to manage its debt obligations and financial risks effectively over time.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.53 | 6.56 | 3.48 | 6.60 | 3.90 |
Keurig Dr Pepper Inc's interest coverage ratio has fluctuated over the years. In December 2020, the company had an interest coverage ratio of 3.90, indicating that it earned 3.90 times the amount of interest expenses it incurred during that period. By December 2021, the interest coverage ratio improved to 6.60, suggesting a stronger ability to meet its interest obligations. However, in December 2022, the ratio declined to 3.48, indicating a decrease in the company's ability to cover interest expenses. The interest coverage ratio increased again to 6.56 by December 2023, showing an improvement in financial health. In December 2024, the ratio dropped to 3.53, indicating a slight decrease in the company's ability to cover interest payments. Overall, while there have been fluctuations in Keurig Dr Pepper Inc's interest coverage ratio, the company has demonstrated varying levels of ability to meet its interest obligations over the years.