Arcosa Inc (ACA)
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 | 2.02 | 1.79 | 1.58 | 1.55 | 1.53 | 1.51 | 1.53 | 1.52 | 1.53 | 1.66 | 1.67 | 1.65 | 1.63 | 1.70 | 1.61 | 1.39 | 1.40 | 1.40 | 1.38 | 1.44 |
Arcosa Inc's solvency ratios indicate a very strong financial position in terms of debt management. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all consistently remained at 0.00 from March 2020 to December 2024. This suggests that the company has a low level of debt relative to its assets, capital, and equity, which is a positive sign of financial stability.
Additionally, the financial leverage ratio, which measures the company's level of debt relative to its equity, has shown a slight increase over the years but has generally remained at a moderate level ranging from 1.38 to 2.02. While the increase in the financial leverage ratio indicates a higher level of financial leverage, it is still within reasonable limits and does not pose a significant risk to the company's solvency.
Overall, based on the solvency ratios, Arcosa Inc appears to have a strong and stable financial position with minimal debt obligations, which bodes well for its long-term financial health and ability to meet its financial obligations.
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 | 2.83 | 4.66 | 6.28 | 6.83 | 7.88 | 13.56 | 12.78 | 12.63 | 11.20 | 5.12 | 4.95 | 4.26 | 4.70 | 5.74 | 8.30 | 13.39 | 14.04 | 16.44 | 17.76 | 19.68 |
Arcosa Inc's interest coverage ratio has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
Starting at a relatively healthy level of 19.68 in March 31, 2020, the interest coverage ratio decreased steadily, indicating a potential deterioration in the company's ability to cover its interest expenses comfortably. By December 31, 2024, the interest coverage ratio had fallen to 2.83, suggesting a significant decrease in the company's ability to service its debt through operating income.
The declining trend in the interest coverage ratio raises concerns about Arcosa Inc's financial stability and ability to meet its debt obligations. It may indicate increased financial risk and potential challenges in managing debt levels. Investors and creditors would closely monitor this ratio to assess the company's financial health and risk profile.