Kirby Corporation (KEX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.18 | 0.19 | 0.22 | 0.25 | 0.23 |
| Debt-to-capital ratio | 0.24 | 0.26 | 0.29 | 0.32 | 0.29 |
| Debt-to-equity ratio | 0.32 | 0.35 | 0.40 | 0.48 | 0.41 |
| Financial leverage ratio | 1.80 | 1.83 | 1.87 | 1.92 | 1.80 |
Kirby Corp.'s solvency ratios demonstrate a favorable trend over the past five years. The debt-to-assets ratio has decreased steadily from 0.23 in 2019 to 0.18 in 2023, indicating that the company has been able to reduce its reliance on debt to finance its assets. This trend suggests improved financial stability and lower risk of insolvency.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a consistent decline over the same period. The debt-to-capital ratio decreased from 0.29 in 2019 to 0.24 in 2023, while the debt-to-equity ratio decreased from 0.41 to 0.32 during the same timeframe. These reductions indicate that the company is gradually decreasing its financial leverage and relying more on equity financing, which is positive for long-term sustainability.
The financial leverage ratio, which measures the proportion of the company's assets that are financed by debt, has also improved from 1.80 in 2019 to 1.80 in 2023. This indicates that Kirby Corp. has been able to maintain a stable level of leverage while reducing its overall debt burden.
Overall, Kirby Corp.'s solvency ratios show a positive trajectory, reflecting a strengthening financial position and decreasing reliance on debt for financing its operations. This trend bodes well for the company's ability to weather financial challenges and pursue growth opportunities in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.66 | 4.69 | -5.85 | -8.49 | 4.38 |
The interest coverage ratio of Kirby Corp. shows an improving trend over the past five years. It increased from 4.18 in 2019 to 6.35 in 2023. This signifies the company's ability to meet its interest payments from its operating profits has been strengthening over time. The significant increases in 2022 and 2023 indicate that Kirby Corp. has been generating significantly more earnings relative to its interest expenses, which is a positive indicator of the company's financial health and ability to manage its debt obligations. The trend suggests that Kirby Corp. has been efficiently managing its interest obligations, which is crucial for its long-term solvency and financial stability.