Koppers Holdings Inc (KOP)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.87 | 3.68 | 3.83 | 3.65 | 3.68 | 3.84 | 4.01 | 4.18 | 4.28 | 4.48 | 4.50 | 4.13 | 4.09 | 4.17 | 4.07 | 4.38 | 4.68 | 5.45 | 8.84 | 15.87 |
Koppers Holdings Inc has exhibited strong solvency ratios over the past years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all consistently remained at 0.00, indicating that the company has not relied heavily on debt to finance its operations and investments.
The financial leverage ratio, which measures the proportion of the company's assets that are financed by debt compared to equity, has shown a declining trend from 15.87 in March 2020 to 3.87 in December 2024. This decreasing trend signifies that Koppers Holdings Inc has been effectively reducing its reliance on debt to fund its operations, which is a positive indication of the company's financial health and ability to meet its financial obligations.
Overall, the solvency ratios of Koppers Holdings Inc suggest a prudent and conservative financial management approach, with a strong focus on maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.91 | 2.37 | 2.46 | 2.43 | 2.75 | 2.83 | 3.03 | 3.09 | 3.13 | 3.70 | 3.37 | 3.84 | 3.95 | 3.69 | 4.37 | 4.23 | 3.27 | 2.82 | 2.30 | 1.97 |
The interest coverage ratio provides valuable insight into Koppers Holdings Inc.'s ability to cover its interest expenses with its operating income. Looking at the trend over the past few years, we observe that the interest coverage ratio has shown fluctuations.
Starting at 1.97 on March 31, 2020, the ratio improved consistently through June 30, 2021, reaching a peak of 4.37. During this period, the company's operating income was sufficient to cover its interest expenses by a healthy margin, indicating strong financial health and lower risk of default.
However, from September 30, 2021, to December 31, 2023, we can see a declining trend in the interest coverage ratio, possibly signaling a period of increased financial risk for the company. The ratio decreased to 2.75 by December 31, 2023, from the peak of 4.37 in June 30, 2021.
Moreover, the interest coverage ratio continued to decline further into the next few periods, reaching a low of 1.91 by December 31, 2024. This decreasing trend could be a concern as it may indicate that Koppers Holdings Inc. is becoming less capable of servicing its interest obligations from its operating income, potentially leading to increased financial strain and risk.
Overall, a declining trend in the interest coverage ratio over time may require further analysis to understand the reasons behind the decrease and to assess the company's ability to manage its debt obligations effectively in the future.