Kirby Corporation (KEX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.77 | 1.80 | 1.82 | 1.87 | 1.92 |
Based on the provided data, Kirby Corporation demonstrates a strong financial position in terms of solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all indicate 0.00 across the years (from 2020 to 2024), showcasing that the company has no long-term debt relative to its assets, capital, or equity. This implies that Kirby Corporation relies less on debt financing to support its operations, which can be viewed positively from a solvency perspective.
Moreover, the Financial leverage ratio shows a declining trend from 1.92 in 2020 to 1.77 in 2024. This decreasing trend indicates that the company is becoming less reliant on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests a stronger equity position relative to debt, which generally improves the company's ability to weather financial challenges and indicates improved solvency.
Overall, based on the solvency ratios provided, Kirby Corporation appears to be in a robust financial position with minimal debt relative to its assets, capital, and equity, coupled with a decreasing reliance on debt financing as seen in the declining financial leverage ratio.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.22 | 6.44 | 3.80 | -6.56 | -8.47 |
The interest coverage ratio measures a company's ability to meet its interest payment obligations with its operating income. Kirby Corporation's interest coverage ratio experienced a significant decline from -8.47 in December 31, 2020 to -6.56 in December 31, 2021, indicating that the company's operating income was insufficient to cover its interest expenses during these periods. However, there has been a positive turnaround in the following years, with the interest coverage ratio showing improvement to 3.80 in December 31, 2022, 6.44 in December 31, 2023, and further to 9.22 in December 31, 2024. This positive trend suggests that Kirby Corporation's operating income has strengthened, allowing the company to comfortably cover its interest payments. Continued monitoring of the interest coverage ratio will be essential to assess Kirby Corporation's ability to sustain its interest obligations in the future.