Knife River Corporation (KNF)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 1.93 | 2.05 | 2.44 | 2.29 | — |
Knife River Corporation's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the years. The debt-to-assets ratio has been at 0.00% from 2021 to 2024, suggesting that the company's total debt is almost non-existent in relation to its total assets.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained at 0.00% during the same period, indicating that Knife River Corporation is not relying heavily on debt to finance its operations or growth. This signifies a lower risk of financial distress and a solid capital structure.
Furthermore, the financial leverage ratio has shown a decreasing trend from 2.29 in 2021 to 1.93 in 2024. This decrease signifies that the company is becoming less reliant on debt to fund its operations and investments, which is a positive indicator of financial stability and strength.
In summary, the solvency ratios of Knife River Corporation demonstrate a healthy financial position with minimal debt levels, indicating a strong ability to meet its financial obligations and withstand economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.91 | 5.22 | 3.16 | 9.88 | 10.34 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. Looking at the data provided for Knife River Corporation, the interest coverage has been fluctuating over the years:
- In December 31, 2020, the interest coverage ratio was 10.34, indicating that the company generated operating income more than 10 times the amount needed to cover its interest expenses.
- By December 31, 2021, the interest coverage ratio slightly decreased to 9.88, still showing a healthy ability to cover interest payments.
- However, in December 31, 2022, there was a significant drop in the interest coverage ratio to 3.16, signaling a potential concern as the company's operating income may not be sufficient to cover its interest expenses.
- Fortunately, by December 31, 2023, the interest coverage ratio improved to 5.22, although it remains below the levels seen in previous years.
- In the most recent data available for December 31, 2024, the interest coverage ratio further increased to 5.91, showing a continued recovery but still not reaching the levels observed in 2020 and 2021.
Overall, the trend in Knife River Corporation's interest coverage ratio shows some variability, with a notable decline in 2022 followed by a partial recovery in subsequent years. Monitoring this ratio is crucial to assess the company's ability to manage its interest expenses and maintain financial stability.