Arcosa Inc (ACA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 2.02 | 1.53 | 1.53 | 1.63 | 1.40 |
Arcosa Inc's solvency ratios reflect a strong financial position with consistently low debt levels across the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all show a consistent figure of 0.00 from December 31, 2020, to December 31, 2024, indicating that the company has no significant debt relative to its assets, capital, or equity during this period.
However, it's worth noting the Financial Leverage ratio, which shows an increase from 1.40 on December 31, 2020, to 2.02 on December 31, 2024. This suggests that the company might have taken on more debt or other liabilities relative to its equity over these years, potentially increasing its financial leverage.
Overall, Arcosa Inc's solvency ratios indicate a low debt burden and a solid financial structure, but monitoring the trend in the Financial Leverage ratio is important to understand the company's changing capital structure and leverage levels.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.83 | 7.97 | 11.20 | 4.57 | 14.04 |
Based on the data provided, Arcosa Inc's interest coverage ratio has exhibited some fluctuations over the past five years.
As of December 31, 2020, the interest coverage ratio stood at a healthy level of 14.04, indicating that the company's operating income was more than sufficient to cover its interest expenses.
However, by December 31, 2021, the interest coverage ratio had declined to 4.57, which may suggest that Arcosa Inc's ability to meet its interest obligations decreased during that period.
The ratio improved slightly by December 31, 2022, reaching 11.20, but then dropped to 7.97 by December 31, 2023. It further decreased to 2.83 by December 31, 2024, indicating a significant decline in the company's ability to cover its interest payments with its operating income.
Overall, while Arcosa Inc started with a strong interest coverage ratio in 2020, there have been fluctuations in subsequent years, with a notable decrease by the end of 2024. This trend suggests a need for the company to closely monitor its interest expenses and operating income to ensure sustainable financial health in the future.