Koppers Holdings Inc (KOP)

The solvency ratios of Koppers Holdings Inc, as represented by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, have shown a generally positive trend over the past five years.

The debt-to-assets ratio has decreased from 0.58 in 2019 to 0.46 in 2023, indicating that the company's proportion of debt relative to its total assets has improved. This suggests that Koppers Holdings Inc has been able to reduce its dependency on debt financing in relation to its total assets.

Similarly, the debt-to-capital ratio has declined from 0.86 in 2019 to 0.63 in 2023, reflecting a reduction in the company's reliance on debt to fund its operations compared to its total capital. This indicates an improvement in the company's capital structure and financial stability.

The debt-to-equity ratio has also shown a decreasing trend, decreasing from 6.12 in 2019 to 1.68 in 2023. This signifies that Koppers Holdings Inc has been reducing its debt levels relative to its equity, which may indicate a strengthening of its financial position and a lower risk level associated with debt obligations.

Lastly, the financial leverage ratio has demonstrated a consistent decline over the past five years, falling from 10.62 in 2019 to 3.68 in 2023. This indicates that the company has been decreasing its financial leverage, which is positive as it shows lower reliance on debt to finance its operations and investments.

Overall, the improving trend in the solvency ratios of Koppers Holdings Inc suggests that the company has been effectively managing its debt levels and enhancing its financial health and stability over the years.

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Coverage ratios

The interest coverage ratio of Koppers Holdings Inc has been fluctuating over the past five years. In 2023, the interest coverage ratio decreased to 2.72 from 3.02 in 2022, indicating that the company's ability to cover its interest expenses with its operating income declined. Despite this decrease, the ratio remains above 1, which generally indicates that the company is generating sufficient operating income to cover its interest expenses.

Comparing to 2021 and 2020, the interest coverage ratio has been on a slight downward trend, with 3.15 in 2021 and 3.34 in 2020. This could potentially signal that the company's ability to cover its interest expenses has been weakening over the past years. However, the ratio is still within a reasonable range, suggesting that the company is managing its interest payments effectively.

In 2019, the interest coverage ratio was 2.19, lower than the subsequent years, indicating a comparatively weaker ability to cover interest expenses at that time. Overall, while the recent decrease in the interest coverage ratio may raise some concerns, it is essential to monitor future trends to assess the company's financial health accurately.