Koppers Holdings Inc (KOP)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 498,900 | 399,400 | 406,600 | 341,700 | 147,300 |
| Debt-to-capital ratio | 0.63 | 0.67 | 0.66 | 0.69 | 0.86 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $835,400K ÷ ($835,400K + $498,900K)
= 0.63
The debt-to-capital ratio of Koppers Holdings Inc has shown a decreasing trend over the past five years, starting at 0.86 in 2019 and decreasing to 0.63 in 2023. This indicates that the company has been able to reduce its reliance on debt in relation to its overall capital structure.
A lower debt-to-capital ratio suggests that Koppers Holdings Inc has a stronger financial position and may be less risky as it indicates a lower proportion of debt in its capital structure compared to equity. This can potentially enhance the company's ability to weather economic downturns, fluctuations in interest rates, or other financial challenges.
Overall, the decreasing trend in the debt-to-capital ratio for Koppers Holdings Inc reflects a positive development in its financial leverage and debt management strategies over the years, potentially improving its long-term financial stability and sustainability. It suggests that the company has been more cautious in managing its debt levels relative to its total capital employed.
Peer comparison
Dec 31, 2023