Keurig Dr Pepper Inc (KDP)
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 | 0.19 | 0.19 | 0.19 | 0.19 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.22 | 0.24 | 0.24 | 0.25 | 0.26 | 0.27 | 0.27 | 0.27 |
| Debt-to-capital ratio | 0.28 | 0.28 | 0.28 | 0.28 | 0.31 | 0.32 | 0.31 | 0.31 | 0.32 | 0.32 | 0.33 | 0.33 | 0.32 | 0.33 | 0.34 | 0.35 | 0.36 | 0.36 | 0.37 | 0.37 |
| Debt-to-equity ratio | 0.39 | 0.39 | 0.39 | 0.40 | 0.44 | 0.46 | 0.46 | 0.45 | 0.46 | 0.48 | 0.48 | 0.49 | 0.47 | 0.50 | 0.52 | 0.55 | 0.55 | 0.57 | 0.58 | 0.58 |
| Financial leverage ratio | 2.03 | 2.04 | 2.05 | 2.06 | 2.06 | 2.05 | 2.03 | 2.01 | 2.03 | 2.06 | 2.08 | 2.09 | 2.09 | 2.12 | 2.14 | 2.16 | 2.13 | 2.16 | 2.17 | 2.17 |
The solvency ratios of Keurig Dr Pepper Inc show consistent trends over the quarters, indicating a stable financial position. The debt-to-assets ratio has ranged between 0.24 and 0.27, suggesting that the company maintains a relatively low level of debt relative to its assets. This implies a lower financial risk and a good ability to cover its debt obligations with its assets.
Similarly, the debt-to-capital ratio has been steady between 0.33 and 0.35, reflecting a moderate proportion of debt in the company's capital structure. The debt-to-equity ratio has shown a slight increase from 0.48 to 0.54, indicating an increase in financial leverage. However, the ratios remain within reasonable limits, balancing debt and equity effectively.
The financial leverage ratio, which measures the company's use of debt in its capital structure, has ranged between 2.01 and 2.06. This indicates that the company is using debt to support its operations but not to an alarming extent. Overall, the solvency ratios suggest that Keurig Dr Pepper Inc has maintained a prudent approach to managing its debt and financial risk, supporting its long-term financial stability.
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 | 6.44 | 4.21 | 3.49 | 3.21 | 3.76 | 5.26 | 6.07 | 6.40 | 5.79 | 4.73 | 4.68 | 4.40 | 3.29 | 7.87 | 4.89 | 3.65 | 3.59 | 3.22 | 2.86 | 2.71 |
Keurig Dr Pepper Inc's interest coverage ratio has shown a positive trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations using its operating income.
Looking at the data, we see a consistent improvement in the interest coverage ratio from Q1 2022 to Q4 2023. The ratio has increased from 4.02 in Q4 2022 to 6.44 in Q4 2023, indicating that the company's operating income is now 6.44 times its interest expenses.
This improvement suggests that Keurig Dr Pepper Inc has become more efficient in generating operating income to cover its interest payments. A higher interest coverage ratio is generally seen as a positive indicator of a company's financial health and ability to manage its debt obligations.
Overall, based on the data provided, Keurig Dr Pepper Inc's interest coverage has been on an upward trajectory, reflecting a strengthening financial position in terms of its ability to meet interest expenses.