Adient PLC (ADNT)
Solvency ratios
| 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 | Dec 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 | 4.38 | 4.72 | 4.47 | 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 |
Based on the provided data, it appears that Adient PLC has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across all periods. This indicates that the company has not used debt to finance its assets or operations during the analyzed periods.
However, the financial leverage ratio has fluctuated over the past several quarters, ranging from 4.07 to 8.46. The financial leverage ratio measures the proportion of a company's total assets that are financed by its creditors rather than its shareholders. The increasing trend in the financial leverage ratio suggests that Adient PLC has been relying more on debt to finance its operations.
A higher financial leverage ratio typically indicates higher financial risk, as the company is more reliant on debt for its operations. It is important for investors and stakeholders to monitor this ratio closely to assess Adient PLC's solvency and financial stability going forward.
Coverage ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.25 | 1.29 | 1.64 | 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 |
Interest coverage is a key financial ratio that indicates a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). Adient PLC's interest coverage ratio has displayed significant fluctuations over the periods provided.
The trend in Adient's interest coverage ratio shows inconsistency and volatility. The ratio fell below 1 in several periods, indicating that the company's EBIT was insufficient to cover its interest expenses during those times. This implies a higher risk of default on debt obligations.
It is noteworthy that the interest coverage ratio significantly improved in the middle of 2022, with ratios well above 6, indicating a healthier financial position and a strong ability to cover interest payments with operating income. However, the ratio deteriorated sharply in late 2022 and continued to fluctuate throughout 2023 and 2024.
The overall analysis suggests that Adient's interest coverage has been unstable and fluctuating, possibly indicating challenges in generating consistent earnings to cover interest expenses. Investors and creditors may view this volatility in interest coverage as a risk factor when evaluating the company's financial health and creditworthiness. Tracking the trend of this ratio and understanding the factors driving the fluctuations will be essential for assessing Adient's financial performance and risk profile.