Knife River Corporation (KNF)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 674,577 | 675,649 | 832,047 | 359 |
| Total stockholders’ equity | US$ in thousands | 1,266,010 | 1,243,020 | 1,094,850 | 974,769 |
| Debt-to-equity ratio | 0.53 | 0.54 | 0.76 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $674,577K ÷ $1,266,010K
= 0.53
The debt-to-equity ratio of Knife River Corporation has fluctuated over the past four quarters. In December 2023, the ratio stood at 0.53, indicating that the company had more equity relative to its debt. This suggests a relatively conservative capital structure at the end of the year. However, in September 2023 and June 2023, the ratio increased to 0.54 and 0.76, respectively, indicating a higher proportion of debt in relation to equity during these periods.
The striking value of 0.00 in March 2023 is unusual and may suggest a data reporting error or a significant event impacting the company's capital structure. It would be prudent for stakeholders to investigate the reason behind this anomaly to ensure the accuracy of financial information.
Overall, fluctuations in the debt-to-equity ratio signal potential changes in the company's financial leverage and risk profile. An upward trend in the ratio implies increasing reliance on debt financing, while a downward trend may indicate a stronger equity position. Understanding the factors influencing these changes is crucial for assessing Knife River Corporation's financial health and sustainability.
Peer comparison
Dec 31, 2023