Adient PLC (ADNT)
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 | 4.38 | 4.23 | 4.42 | 4.54 | 8.46 |
Adient PLC has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across the last five years, indicating that the company has not utilized debt to finance its operations. This suggests that Adient has relied predominantly on equity to fund its activities rather than taking on debt.
In terms of the financial leverage ratio, Adient's ratio has fluctuated over the past five years. The ratio increased from 4.23 in 2023 to 4.38 in 2024, showing a slight uptick in financial leverage. However, it is important to note that the ratio was significantly higher in 2020 at 8.46, which might indicate that the company had a higher level of financial leverage and potentially higher financial risk at that time.
Overall, the solvency ratios for Adient PLC suggest that the company has maintained a conservative financial structure with minimal debt exposure over the years. It is essential to monitor changes in these ratios to assess the company's ability to meet its long-term financial obligations and manage its financial risk effectively.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.27 | 2.55 | 0.86 | 6.93 | -1.41 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a better ability to meet interest obligations.
Looking at Adient PLC's interest coverage ratio over the past five years, there has been fluctuation in the company's ability to cover its interest expenses.
In Sep 30, 2024, the interest coverage ratio was 1.27, which indicates that the company's operating income was able to cover its interest expenses 1.27 times. This suggests a lower ability to cover interest expenses compared to the previous year.
In Sep 30, 2023, the interest coverage improved to 2.55, reflecting a stronger ability to cover interest expenses. This was a positive sign for the company's financial health.
However, in Sep 30, 2022, the interest coverage ratio dropped significantly to 0.86, indicating a decrease in the company's ability to cover interest expenses. This could raise concerns about the company's financial stability.
The year Sep 30, 2021, showed a substantial improvement in the interest coverage ratio to 6.93, which signifies a strong ability to cover interest expenses. This was a significant positive development for the company.
On the other hand, in Sep 30, 2020, the interest coverage ratio was negative at -1.41, indicating that the company's operating income was insufficient to cover its interest expenses, raising red flags about its financial position.
Overall, Adient PLC's interest coverage ratio has exhibited volatility in recent years, with fluctuations impacting its ability to cover interest expenses effectively. It is important for stakeholders to closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations.