Knowles Cor (KN)
Debt-to-equity 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-equity ratio | 0.22 | 0.05 | 0.05 | 0.00 | 0.12 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $224,100K ÷ $1,034,100K
= 0.22
The debt-to-equity ratio of Knowles Corp has shown some fluctuation over the past five years. In 2023, the debt-to-equity ratio increased to 0.26 from 0.05 in 2022 and 2021. This indicates that the company relied more on debt financing relative to equity in 2023 compared to the previous two years. However, it is important to note that the debt-to-equity ratio in 2023 is not only higher than the previous two years but also higher than the ratio in 2020 and 2019, where it stood at 0.13 for both years.
The sudden increase in the debt-to-equity ratio from 0.05 in 2022 and 2021 to 0.26 in 2023 may suggest that Knowles Corp took on more debt relative to its equity in the most recent year. This could be due to various reasons such as financing expansion projects, acquisitions, or managing operational challenges. Investors and stakeholders may want to further investigate the reasons behind this significant change in the company's capital structure to assess the potential implications on the company's financial health and risk profile.
Peer comparison
Dec 31, 2023