Knowles Cor (KN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | 0.10 | 0.15 | 0.09 | 0.10 | 0.11 | 0.11 |
| 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 |
| Debt-to-equity ratio | 0.22 | 0.05 | 0.05 | 0.05 | 0.05 | 0.07 | 0.06 | 0.05 | 0.05 | 0.00 | 0.00 | 0.00 | 0.00 | 0.17 | 0.13 | 0.21 | 0.12 | 0.12 | 0.14 | 0.14 |
| Financial leverage ratio | 1.41 | 1.19 | 1.19 | 1.21 | 1.19 | 1.22 | 1.21 | 1.17 | 1.19 | 1.26 | 1.26 | 1.27 | 1.27 | 1.32 | 1.36 | 1.35 | 1.28 | 1.28 | 1.29 | 1.29 |
Knowles Corp's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and manage its debt levels. Looking at the trends over the past eight quarters, we can observe the following:
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. Knowles Corp has maintained a relatively stable debt-to-assets ratio ranging from 0.04 to 0.19. The increase in Q4 2023 compared to previous quarters suggests a slightly higher reliance on debt to fund its assets, but overall, the company has kept its debt at a manageable level.
2. Debt-to-capital ratio: This ratio indicates the percentage of the company's capital that comes from debt. Similarly to the debt-to-assets ratio, Knowles Corp has maintained a consistent debt-to-capital ratio between 0.04 and 0.21. The slight increase in Q4 2023 may indicate a slightly higher proportion of debt in the company's capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio assesses the company's financial leverage by comparing its debt to shareholders' equity. Knowles Corp's debt-to-equity ratio has also remained stable within a narrow range of 0.05 to 0.26 over the past eight quarters. The increase in Q4 2023 compared to previous quarters suggests a higher level of debt relative to equity.
4. Financial leverage ratio: This ratio measures the company's ability to meet its financial obligations and signifies the extent to which the firm relies on debt financing. Knowles Corp's financial leverage ratio has fluctuated between 1.17 and 1.41, with a slight increase in Q4 2023. This may indicate a higher degree of financial risk associated with the company's capital structure.
In summary, Knowles Corp has generally maintained conservative debt levels and solvency ratios within a reasonable range over the past eight quarters. However, the fluctuation in some ratios, particularly in Q4 2023, suggests a need for continued monitoring of the company's debt management practices and financial leverage to ensure long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.46 | -49.82 | -52.72 | -112.08 | -106.36 | -36.37 | -15.34 | 10.80 | 8.15 | 6.96 | 5.50 | 3.42 | 1.78 | 0.80 | 1.82 | 2.95 | 3.59 | 7.19 | 5.13 | 4.84 |
Knowles Corp's interest coverage ratio has shown fluctuations over the past eight quarters, ranging from a low of 8.02 in Q4 2023 to a high of 25.10 in Q4 2022. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to cover interest expenses with operating income.
The trend indicates that the company's ability to cover interest payments improved significantly in Q4 2022 but has since decreased. While the ratios in Q3 and Q2 2023 were relatively high, they decreased in Q4 2023, potentially signaling a reduced ability to cover interest expenses. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and debt servicing capabilities.