Kirby Corporation (KEX)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	5,722,200	5,554,920	5,399,060	5,924,170	6,079,100
Total stockholders’ equity	US$ in thousands	3,185,430	3,042,880	2,886,320	3,084,310	3,368,620
Financial leverage ratio		1.80	1.83	1.87	1.92	1.80

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,722,200K ÷ $3,185,430K
= 1.80

Kirby Corp.'s financial leverage ratio has shown a fluctuating trend over the past five years. The ratio stood at 1.80 in both 2019 and 2023, indicating a stable level of leverage in these years. However, there was a gradual increase in leverage from 2019 to 2021, reaching a ratio of 1.87. This suggests that the company may have taken on more debt relative to its equity during this period.

In the subsequent years, the financial leverage ratio continued to rise, reaching its highest point of 1.92 in 2020. This increase may raise concerns about the company's increasing reliance on debt financing, which could potentially lead to higher financial risk and reduced financial flexibility.

In 2023, the financial leverage ratio decreased slightly to 1.80, signaling a potential effort to reduce leverage and strengthen the company's financial position.

Overall, Kirby Corp.'s financial leverage ratio trend indicates fluctuations in the company's capital structure over the years, with varying levels of debt utilization relative to equity. It will be crucial for the company to monitor and manage its leverage effectively to ensure optimal financial health and stability.