Koppers Holdings Inc (KOP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.87 | 3.68 | 4.28 | 4.09 | 4.68 |
Based on the provided data, Koppers Holdings Inc has consistently maintained very low solvency ratios over the years.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. Koppers Holdings Inc has a debt-to-assets ratio of 0.00 for each year from 2020 to 2024, indicating that the company has no debt financing relative to its total assets. This suggests that the company relies more on equity financing than debt to fund its operations.
2. Debt-to-capital ratio: The debt-to-capital ratio compares a company's total debt to its total capital (debt + equity). Similar to the debt-to-assets ratio, Koppers Holdings Inc's debt-to-capital ratio is also 0.00 for each year, indicating a minimal reliance on debt in the company's capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's total debt to its total equity. Once again, Koppers Holdings Inc shows a debt-to-equity ratio of 0.00 for each year, reaffirming the company's low debt levels relative to equity.
4. Financial leverage ratio: The financial leverage ratio, calculated as total assets divided by total equity, provides insight into the level of financial risk a company has assumed through debt financing. Koppers Holdings Inc has seen a slight decrease in its financial leverage ratio from 4.68 in 2020 to 3.87 in 2024. This suggests that the company's reliance on debt has decreased over the years, resulting in a more conservative financial structure.
Overall, based on these solvency ratios, Koppers Holdings Inc appears to have a strong financial position with minimal debt levels and a conservative capital structure, which may indicate lower financial risk and greater stability for the company.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.91 | 2.75 | 3.13 | 3.95 | 3.25 |
The interest coverage ratio for Koppers Holdings Inc has shown some fluctuation over the past five years. Starting at 3.25 in December 2020, it improved to 3.95 by December 2021, indicating the company's ability to cover its interest expenses comfortably. However, in the following years, the ratio experienced a decline, dropping to 3.13 in December 2022, 2.75 in December 2023, and further down to 1.91 by December 2024.
The decreasing trend in the interest coverage ratio from 2022 to 2024 suggests that Koppers Holdings Inc may be facing challenges in generating enough operating income to cover its interest expenses. It is important for the company to closely monitor and manage its debt levels and interest costs to ensure sustainable financial health and avoid potential liquidity issues in the future.