Knife River Corporation (KNF)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,599,810 | 2,680,880 | 2,642,900 | 2,326,770 |
| Total stockholders’ equity | US$ in thousands | 1,266,010 | 1,243,020 | 1,094,850 | 974,769 |
| Financial leverage ratio | 2.05 | 2.16 | 2.41 | 2.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,599,810K ÷ $1,266,010K
= 2.05
The financial leverage ratio for Knife River Corporation has ranged between 2.05 and 2.41 over the past year. This ratio measures the company's level of debt relative to its equity, indicating the extent to which the company is using debt financing. A higher financial leverage ratio suggests that the company is relying more on debt to finance its operations and growth, which can increase financial risk and interest expenses.
In the case of Knife River Corporation, the trend shows a slight increase in the financial leverage ratio from the end of 2022 to mid-2023, followed by a slight decrease in the most recent quarter. This indicates that the company might have taken on more debt during the first half of the year but managed to reduce its debt levels in the most recent quarter.
It is important for stakeholders to monitor the financial leverage ratio closely to ensure that the company's debt levels are sustainable and in line with its financial health and growth objectives. A fluctuating ratio may suggest changes in the company's capital structure and financing decisions, which need to be analyzed in the context of the company's overall financial performance and risk management.
Peer comparison
Dec 31, 2023