Knowles Cor (KN)
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 | 224,100 | 45,000 | 70,000 | 0 | 156,800 |
| Total assets | US$ in thousands | 1,462,800 | 1,183,900 | 1,731,600 | 1,654,900 | 1,654,600 |
| Debt-to-assets ratio | 0.15 | 0.04 | 0.04 | 0.00 | 0.09 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $224,100K ÷ $1,462,800K
= 0.15
The debt-to-assets ratio of Knowles Corp has shown variability over the past five years. In 2023, the ratio increased to 0.19 from 0.04 in 2022. This significant increase indicates that a higher proportion of the company's assets are financed through debt in 2023. Compared to the ratios of 0.04 in both 2022 and 2021, the current ratio suggests a notable shift towards higher leverage.
However, when considering the historical trend, the 2023 ratio is still lower than the ratios of 0.10 in both 2020 and 2019. This implies that Knowles Corp has maintained a relatively lower level of debt financing compared to total assets in 2023, even with the increase from the previous year.
Overall, the debt-to-assets ratio for 2023 signifies a change in the company's capital structure towards increased reliance on debt for funding its assets compared to recent years, yet still remaining below the levels observed a few years ago. It is important for stakeholders to monitor how this trend evolves in the coming years to assess its impact on the company's financial risk and sustainability.
Peer comparison
Dec 31, 2023