Knife River Corporation (KNF)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,851,200 | 2,599,810 | 2,505,750 | 2,181,820 | — |
| Total stockholders’ equity | US$ in thousands | 1,476,080 | 1,266,010 | 1,027,460 | 952,844 | — |
| Financial leverage ratio | 1.93 | 2.05 | 2.44 | 2.29 | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,851,200K ÷ $1,476,080K
= 1.93
The financial leverage ratio of Knife River Corporation has shown fluctuations over the past five years. In December 2020, the ratio was not available. However, it subsequently increased to 2.29 in December 2021, further rising to 2.44 in December 2022. The ratio then decreased to 2.05 in December 2023 and further decreased to 1.93 in December 2024.
These fluctuations indicate changes in the company's reliance on debt financing to fund its operations and growth. The increasing trend in 2021 and 2022 suggest a higher level of debt relative to equity, which could potentially increase financial risk. However, the subsequent decreases in 2023 and 2024 may indicate efforts to reduce debt levels and improve the company's overall financial health.
It is important for stakeholders to closely monitor Knife River Corporation's financial leverage ratio to assess its ability to meet its debt obligations and sustain long-term profitability.
Peer comparison
Dec 31, 2024