Adient PLC (ADNT)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 4.07 | 4.23 | 4.36 | 4.31 | 4.23 | 4.42 | 4.39 | 4.31 | 4.57 | 4.54 | 6.68 | 6.70 | 7.26 | 8.46 | 7.70 | 6.91 | 5.95 | 5.60 | 5.51 | 4.68 |
Adient plc's solvency ratios indicate its ability to meet its long-term debt obligations. The Debt-to-assets ratio has been relatively stable around 0.27 to 0.30 over the past eight quarters, showing that around 27% to 30% of the company's assets are financed by debt.
The Debt-to-capital ratio also remained consistent at approximately 0.53 to 0.56 during the same period, suggesting that debt accounts for about 53% to 56% of Adient's capital structure.
The Debt-to-equity ratio demonstrates a slight upward trend from 1.11 to 1.28 over the same period, indicating an increased reliance on debt financing compared to equity. This ratio shows that for every dollar of equity, Adient carries between $1.11 to $1.28 of debt.
The Financial leverage ratio showcases a somewhat fluctuating trend but generally ranging between 4.07 to 4.42 over the analyzed quarters. This ratio signifies that for every dollar of equity, Adient has between $4.07 to $4.42 of total assets.
Overall, Adient plc appears to have a stable solvency position with consistent debt-to-assets and debt-to-capital ratios, albeit showing a slight increase in reliance on debt financing as indicated by the Debt-to-equity ratio. The Financial leverage ratio indicates the company's level of leverage and highlights the importance of monitoring the trend to ensure sustainable long-term financial health.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.98 | 2.23 | 2.17 | 1.64 | 1.28 | 0.87 | 6.89 | 6.07 | 6.39 | 6.93 | 1.81 | 0.67 | 0.18 | -1.41 | -1.80 | 0.35 | -0.24 | 0.41 | -5.83 | -6.67 |
The interest coverage ratio for Adient plc fluctuated over the past eight quarters. In Q1 2024, the interest coverage ratio was 3.40, showing the ability of the company to cover its interest expenses approximately 3.4 times with its operating income. This was relatively stable compared to the previous quarter at 3.43 in Q4 2023 and 3.50 in Q3 2023.
However, there was a slight dip in Q2 2023 with an interest coverage ratio of 2.83, indicating a lower ability to cover interest payments. The ratio further decreased to 2.49 in Q1 2023 and significantly dropped to 1.87 in Q4 2022, reflecting potential financial strain during those periods.
The interest coverage ratio significantly improved in Q3 2022 and Q2 2022, standing at 8.47 and 7.99, respectively. This strong performance suggests that the company had substantial earnings to cover its interest obligations comfortably during those quarters.
Overall, the trend in Adient plc's interest coverage ratio indicates some variability in the company's ability to cover interest expenses over the past eight quarters, with some periods showing stronger coverage than others.