Koppers Holdings Inc (KOP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,835,500 | 1,711,400 | 1,661,900 | 1,598,600 | 1,564,600 |
| Total stockholders’ equity | US$ in thousands | 498,900 | 399,400 | 406,600 | 341,700 | 147,300 |
| Financial leverage ratio | 3.68 | 4.28 | 4.09 | 4.68 | 10.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,835,500K ÷ $498,900K
= 3.68
The financial leverage ratio of Koppers Holdings Inc has shown fluctuations over the past five years, ranging from a low of 3.68 in 2023 to a high of 10.62 in 2019. This ratio indicates the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio suggests a higher level of debt relative to equity, signifying greater financial risk.
In 2023, the financial leverage ratio decreased to 3.68, indicating a lower reliance on debt compared to the previous year. This could imply a more conservative approach to financing and potentially reduced financial risk. However, it is important to consider the reasons behind this decrease and any potential impacts on the company's overall financial stability.
On the other hand, the exceptionally high ratio of 10.62 in 2019 suggests that Koppers Holdings Inc was heavily leveraged that year, with significant reliance on debt to support its operations. This could raise concerns about the company's ability to meet debt obligations and manage financial risks effectively.
Overall, the trend in Koppers Holdings Inc's financial leverage ratio reflects varying levels of debt utilization over the years, indicating a dynamic approach to capital structure management. Monitoring this ratio is crucial for assessing the company's financial health and risk profile.
Peer comparison
Dec 31, 2023