Knowles Cor (KN)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 224,100 | 45,000 | 45,000 | 45,000 | 45,000 | 78,000 | 73,000 | 70,000 | 70,000 | 0 | 0 | 0 | 0 | 213,000 | 160,900 | 258,800 | 156,800 | 154,800 | 171,900 | 170,000 |
| Total stockholders’ equity | US$ in thousands | 1,034,100 | 993,300 | 986,500 | 987,400 | 992,900 | 1,180,200 | 1,203,600 | 1,474,100 | 1,459,500 | 1,366,100 | 1,332,100 | 1,323,700 | 1,303,500 | 1,264,600 | 1,243,800 | 1,253,800 | 1,288,500 | 1,257,300 | 1,227,200 | 1,216,500 |
| Debt-to-capital ratio | 0.18 | 0.04 | 0.04 | 0.04 | 0.04 | 0.06 | 0.06 | 0.05 | 0.05 | 0.00 | 0.00 | 0.00 | 0.00 | 0.14 | 0.11 | 0.17 | 0.11 | 0.11 | 0.12 | 0.12 |
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 been relatively stable over the past eight quarters, ranging from 0.04 to 0.21. In Q4 2023, the ratio was at its highest level of 0.21, indicating that the company's debt accounted for 21% of its total capital. However, this was an isolated peak, as the ratio trended downwards in the preceding quarters.
Overall, the company has maintained a conservative approach towards debt financing, with the ratio consistently below 0.1 in most quarters. This suggests that Knowles Corp relies more on equity funding than debt to finance its operations and investments. A lower debt-to-capital ratio signifies lower financial risk and greater financial stability for the company, as it indicates a lesser reliance on borrowed funds.
It is important for stakeholders to monitor changes in the debt-to-capital ratio over time to assess Knowles Corp's capital structure and leverage levels. A stable and relatively low ratio indicates a healthy balance between debt and equity in the company's capital structure.
Peer comparison
Dec 31, 2023