Arcosa Inc (ACA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.53 | 1.53 | 1.63 | 1.40 | 1.29 |
The solvency ratios of Arcosa Inc over the past five years show a consistent trend of maintaining relatively low levels of debt in relation to assets, capital, and equity. The debt-to-assets ratio has ranged from 0.05 to 0.21, indicating that the company has kept debt at a moderate level compared to its total assets. The debt-to-capital ratio and debt-to-equity ratio have also reflected this trend, with values ranging from 0.06 to 0.26 and 0.06 to 0.35 respectively. These ratios suggest that Arcosa Inc has managed its debt levels effectively in relation to its capital and equity base.
Additionally, the financial leverage ratio, which measures the extent to which the company relies on debt financing, has consistently remained below 2 over the period. This indicates that Arcosa Inc has a relatively conservative capital structure, with a healthy balance between debt and equity funding. The decreasing trend in the financial leverage ratio from 2019 to 2023 further suggests that the company has been reducing its reliance on debt financing over time.
Overall, the solvency ratios of Arcosa Inc show a prudent approach to managing its debt levels, indicating a solid financial position and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.97 | 11.20 | 4.57 | 14.04 | 22.59 |
The interest coverage ratio for Arcosa Inc has fluctuated over the past five years, ranging from a low of 4.71 in 2021 to a high of 28.31 in 2019. The ratio measures the company's ability to cover its interest expenses with its operating income. An interest coverage ratio above 1 indicates that the company is generating sufficient earnings to cover its interest obligations.
In 2023, the interest coverage ratio improved to 7.81 from 5.35 in 2022, signaling a better ability to meet interest payments using operating income. Despite the increase, the ratio remains lower than the levels seen in 2019 and 2020, suggesting that the company may still have some room for improvement in managing its interest expenses.
Overall, Arcosa Inc's interest coverage ratio demonstrates a varying trend over the past five years, indicating fluctuations in the company's ability to cover its interest obligations with operating income. Ongoing monitoring and management of interest expenses will be crucial for maintaining a healthy financial position in the future.