Knowles Cor (KN)

Knowles Cor's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent of its financial leverage.

- The Debt-to-assets ratio shows the proportion of the company's assets financed by debt. Knowles Cor's Debt-to-assets ratio has been fluctuating over the years, ranging from 0.00 to 0.18. The lower ratio of 0.00 indicates the company has minimal debt relative to its total assets, but the ratio increased to 0.18 by June 30, 2024, suggesting a higher reliance on debt financing.

- The Debt-to-capital ratio indicates the percentage of the company's capital structure that is financed by debt. Knowles Cor's Debt-to-capital ratio has also varied, with values between 0.00 and 0.22. The higher ratios towards the end of the period suggest an increasing reliance on debt in the capital structure.

- The Debt-to-equity ratio measures the company's financial leverage and the proportion of equity and debt in the capital structure. Knowles Cor's Debt-to-equity ratio has shown fluctuations ranging from 0.00 to 0.28. A higher ratio indicates higher financial leverage, and the increasing trend over the years signifies a more leveraged capital structure.

- The Financial leverage ratio provides a broader view of the company's overall leverage. Knowles Cor's Financial leverage ratio has been fluctuating, with values ranging from 1.17 to 1.56. The increasing trend in the ratio indicates that the company is taking on more debt relative to its equity, which can amplify both returns and risks.

In conclusion, Knowles Cor's solvency ratios suggest a varying degree of reliance on debt financing and financial leverage over the analyzed period, with a trend towards higher leverage in the later years. Investors and stakeholders may need to monitor these ratios closely to assess the company's financial health and risk profile.

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Coverage ratios

Knowles Cor's interest coverage ratio has fluctuated significantly over the analyzed period, reflecting the company's ability to meet its interest obligations. The interest coverage ratio, a measure of a company's ability to pay interest expenses on its outstanding debt, shows the number of times the company can cover its interest expenses with its earnings.

From March 31, 2020, to March 31, 2021, the interest coverage improved steadily from 2.95 to 3.42, indicating an increase in the company's ability to cover its interest costs. This positive trend continued into June 30, 2021, and September 30, 2021, as the interest coverage ratios rose to 5.50 and 6.96, respectively, reflecting a strengthening financial position.

By December 31, 2021, and March 31, 2022, the interest coverage ratios increased substantially to 8.15 and 10.80, respectively, suggesting a significant enhancement in the company's ability to meet its interest obligations comfortably.

However, starting from June 30, 2022, the interest coverage ratio turned negative and declined sharply to -106.36 by December 31, 2022, indicating a concerning deterioration in the company's ability to cover its interest expenses with operating income. This negative trend continued until March 31, 2023, before showing some improvement in the following periods.

By December 31, 2023, the interest coverage ratio returned to a positive figure of 9.46, signifying a recovery in the company's ability to service its interest payments. The ratios continued to show fluctuations in the subsequent periods, with occasional negative values, indicating ongoing challenges in managing interest expenses relative to earnings.

In conclusion, Knowles Cor's interest coverage ratio has displayed significant variability over the analyzed period, with periods of both strength and weakness. Investors and creditors should closely monitor these fluctuations to assess the company's financial health and ability to meet its debt obligations.