Kirby Corporation (KEX)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,008,530	1,076,330	1,161,430	1,468,550	1,369,750
Total assets	US$ in thousands	5,722,200	5,554,920	5,399,060	5,924,170	6,079,100
Debt-to-assets ratio		0.18	0.19	0.22	0.25	0.23

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,008,530K ÷ $5,722,200K
= 0.18

The debt-to-assets ratio of Kirby Corp. has been showing a decreasing trend over the past five years, indicating a favorable position in terms of leveraging debt relative to its total assets. This ratio measures the proportion of the company's assets financed by debt as opposed to equity.

From December 31, 2019, where the debt-to-assets ratio was 0.23, there has been a gradual decline to 0.18 by December 31, 2023. This suggests that Kirby Corp. has been reducing its reliance on debt financing in relation to its total assets over the years.

A lower debt-to-assets ratio implies a lower level of financial risk and greater financial stability, as the company has a higher proportion of assets funded by equity rather than debt. This can be seen as a positive indicator of financial health and prudent financial management by Kirby Corp.

Overall, the decreasing trend in the debt-to-assets ratio of Kirby Corp. signals a conservative approach to capital structure and indicates a strong financial position with a lower dependence on debt for its operations and investments.