Aecom Technology Corporation (ACM)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 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 | 5.52 | 5.08 | 4.50 | 4.33 | 3.95 |
Based on the solvency ratios of Aecom Technology Corporation provided in the table, we can see a consistent trend of zero for the debt-to-assets, debt-to-capital, and debt-to-equity ratios over the five-year period from September 30, 2020, to September 30, 2024. These ratios indicate that the company has not utilized debt to finance its operations relative to its total assets, capital, or equity during this period.
However, the financial leverage ratio has been showing an increasing trend, moving from 3.95 in September 2020 to 5.52 in September 2024. This indicates that the company has been increasingly financing its operations through debt, which is reflected in the higher financial leverage ratio. A higher financial leverage ratio suggests that the company is relying more on debt to support its operations, which may increase financial risk.
Although the debt levels seem to be minimal based on the debt-related ratios, the increasing trend in the financial leverage ratio warrants further analysis to understand the reasons behind the shift towards more debt financing. It is essential for investors and stakeholders to closely monitor the company's debt management practices and overall financial health, considering the implications of higher leverage on the company's solvency and risk profile.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 108.87 | 43.22 | 91.10 | 51.60 | 52.25 |
The interest coverage ratio for Aecom Technology Corporation has demonstrated fluctuations over the past five years. In the most recent period ending on September 30, 2024, the interest coverage ratio was 108.87, indicating a significant improvement from the previous year's ratio of 43.22. This suggests that the company's ability to meet its interest obligations with its operating income has strengthened considerably.
The interest coverage ratio in 2024 also exceeded the ratios reported in 2022 and 2021, which were 91.10 and 51.60 respectively, indicating a positive trend in the company's ability to cover its interest expenses over the years. However, the ratio is slightly lower compared to the ratio reported in 2020, which was 52.25.
Overall, the consistent improvement in Aecom Technology Corporation's interest coverage ratio demonstrates the company's enhanced capacity to service its debt obligations using its operating profits. This trend suggests a favorable financial position and indicates a lower risk of default on its interest payments.