Koppers Holdings Inc (KOP)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 835,400 | 859,800 | 902,200 | 881,000 | 817,700 | 818,700 | 833,700 | 829,400 | 781,500 | 802,600 | 799,100 | 801,000 | 765,800 | 796,100 | 896,900 | 943,000 | 891,000 | 948,800 | 993,200 | 1,001,100 |
| Total stockholders’ equity | US$ in thousands | 498,900 | 472,000 | 452,600 | 430,600 | 399,400 | 368,900 | 375,300 | 418,900 | 406,600 | 396,400 | 411,800 | 376,700 | 341,700 | 281,400 | 175,900 | 99,100 | 147,300 | 100,400 | 91,600 | 78,000 |
| Debt-to-equity ratio | 1.67 | 1.82 | 1.99 | 2.05 | 2.05 | 2.22 | 2.22 | 1.98 | 1.92 | 2.02 | 1.94 | 2.13 | 2.24 | 2.83 | 5.10 | 9.52 | 6.05 | 9.45 | 10.84 | 12.83 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $835,400K ÷ $498,900K
= 1.67
The debt-to-equity ratio of Koppers Holdings Inc has shown some fluctuation over the past eight quarters. The ratio ranged from 1.68 to 2.22 during this period. The trend indicates an increase in leverage from the first quarter of 2022 to the second quarter of 2023, where the ratio reached its peak at 2.22.
A debt-to-equity ratio of above 1 indicates that the company is relying more on debt financing than equity to fund its operations and growth. The increasing trend in the ratio suggests a higher level of financial risk as the company has been taking on more debt relative to its equity over time.
It is crucial for stakeholders to monitor this ratio closely as higher debt levels could potentially lead to financial distress or impact the company's ability to meet its financial obligations in the long run. Further analysis of the company's overall financial health and ability to service its debt obligations would provide a more comprehensive assessment of its leverage position.
Peer comparison
Dec 31, 2023