Knife River Corporation (KNF)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.93 | 1.99 | 2.07 | 2.06 | 2.05 | 2.16 | 2.41 | 2.39 | 2.44 |
Knife River Corporation has consistently maintained a strong solvency position as indicated by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been recorded at 0.00 throughout the period from December 31, 2022, to December 31, 2024. These ratios suggest that the company has not taken on any long-term debt relative to its assets, capital, or equity, signifying a low level of financial risk and reliance on external borrowing.
In terms of the Financial leverage ratio, Knife River Corporation has shown a decreasing trend from 2.44 on December 31, 2022, to 1.93 on December 31, 2024. This decline indicates a reduction in the company's reliance on debt to finance its operations and investments, implying a stronger financial position and lower vulnerability to financial distress.
Overall, Knife River Corporation's solvency ratios reflect a prudent and conservative approach to managing its financial structure, with minimal debt levels in relation to its assets, capital, and equity. This indicates a sound financial standing and sufficient capacity to meet its obligations and fund its growth initiatives without excessive leverage.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.89 | 5.79 | 5.62 | 4.82 | 5.30 | 3.56 | 2.99 | 2.93 | 3.09 |
Knife River Corporation's interest coverage ratio has displayed some fluctuations over the given time period. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.
In December 2022, the interest coverage ratio was 3.09, indicating that the company generated enough operating income to cover its interest expenses 3.09 times over. This ratio decreased slightly to 2.93 by March 2023 before showing a slight improvement to 2.99 by June 2023.
The interest coverage ratio experienced a more significant increase to 3.56 by September 2023, which suggests the company's operating income improved relative to its interest expenses. The ratio continued to rise, reaching 5.30 by December 2023, indicating a stronger ability to cover interest costs.
The trend of improving interest coverage ratio continued in the following periods, with ratios of 4.82 in March 2024, 5.62 in June 2024, 5.79 in September 2024, and 5.89 in December 2024. These numbers suggest that Knife River Corporation's operating income is significantly exceeding its interest obligations, demonstrating a healthy financial position in terms of interest coverage.
Overall, Knife River Corporation's interest coverage ratio has shown an improving trend, indicating a favorable ability to meet its interest payments and potentially reducing the company's financial risk related to debt servicing.