Koppers Holdings Inc (KOP)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 835,400 | 817,700 | 781,500 | 765,800 | 891,000 |
| Total assets | US$ in thousands | 1,835,500 | 1,711,400 | 1,661,900 | 1,598,600 | 1,564,600 |
| Debt-to-assets ratio | 0.46 | 0.48 | 0.47 | 0.48 | 0.57 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $835,400K ÷ $1,835,500K
= 0.46
The debt-to-assets ratio for Koppers Holdings Inc has shown a decreasing trend from 2019 to 2023. This ratio measures the proportion of the company's assets financed by debt, indicating the level of financial leverage. In 2019, the ratio was high at 0.58, meaning 58% of the company's assets were financed by debt. However, this ratio has gradually decreased to 0.46 by the end of 2023, indicating a lower reliance on debt financing.
A decreasing trend in the debt-to-assets ratio can suggest that the company is becoming less leveraged over time, which could lead to reduced financial risk and potentially improved financial stability. This trend may indicate that the company is effectively managing its debt levels and improving its financial health by relying less on debt to finance its operations. However, it is essential to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial position.
Peer comparison
Dec 31, 2023