Knowles Cor (KN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,034,100 | 992,900 | 1,459,500 | 1,303,500 | 1,288,500 |
| Debt-to-capital ratio | 0.18 | 0.04 | 0.05 | 0.00 | 0.11 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $224,100K ÷ ($224,100K + $1,034,100K)
= 0.18
The debt-to-capital ratio of Knowles Corp has displayed fluctuations over the past five years. The ratio has generally been within a moderate range, with a low of 0.05 in both 2022 and 2021, indicating a conservative capital structure with minimal reliance on debt financing during those years. In 2023, the ratio increased to 0.21, signifying a higher proportion of debt relative to the company's capital structure compared to the previous years.
The significant increase in the debt-to-capital ratio in 2023 suggests a potential shift in the company's financing strategy towards greater reliance on debt to fund its operations or growth initiatives. It is important to further investigate the reasons behind this change and assess the impact on the company's overall financial health and risk profile. Analyzing the trend in conjunction with other financial metrics would provide a more comprehensive understanding of Knowles Corp's leverage and capital structure dynamics.
Peer comparison
Dec 31, 2023