Alamo Group Inc (ALG)
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 | 1.42 | 1.46 | 1.54 | 1.59 | 1.51 | 1.64 | 1.68 | 1.74 | 1.67 | 1.80 | 1.81 | 1.84 | 1.71 | 1.76 | 1.80 | 1.88 | 1.77 | 1.94 | 2.06 | 2.23 |
The solvency ratios of Alamo Group Inc, based on the provided data, indicate a very strong financial position with consistently low debt levels in relation to its assets, capital, and equity.
- The Debt-to-assets ratio has remained at 0.00 throughout all the periods, suggesting that the company has no debt in relation to its total assets. This implies that the company is not relying on debt to finance its operations and is in a strong position to meet its obligations.
- Similarly, the Debt-to-capital ratio has also consistently remained at 0.00, indicating no debt in relation to the company's total capital structure. This reflects a healthy financial position and a conservative approach to capital management.
- The Debt-to-equity ratio has also been consistently at 0.00 across all periods, signaling that the company is not using debt to finance its operations in relation to its equity. This indicates a strong financial foundation and low financial risk.
- The Financial leverage ratio, which measures the extent of a company's debt financing, has shown a decreasing trend over the periods, from 2.23 in March 2020 to 1.42 in December 2024. This decline indicates that the company is gradually reducing its reliance on debt to fund its operations, further strengthening its solvency position.
In conclusion, Alamo Group Inc's solvency ratios demonstrate a solid financial position with minimal debt levels, reflecting a conservative and prudent financial management approach.
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 | 8.22 | 7.43 | 7.25 | 7.47 | 7.59 | 8.06 | 8.61 | 9.63 | 10.33 | 11.15 | 11.61 | 11.62 | 11.44 | 9.73 | 9.80 | 7.78 | 6.45 | 6.31 | 6.10 | 7.45 |
The interest coverage ratio of Alamo Group Inc has shown a fluctuating trend over the past five years. It started at 7.45 in March 2020 and declined slightly to 6.10 by June 2020. However, the ratio gradually improved to 11.44 by December 2021, indicating the company's ability to cover its interest expenses comfortably.
From March 2022 to September 2024, the interest coverage ratio remained above 7, reflecting a stable financial position in terms of meeting interest obligations. The ratio peaked at 11.62 in March 2022, demonstrating a strong ability to service its debt.
Although there was a slight decline in the interest coverage ratio towards the end of 2024, dropping to 8.22 by December, the overall trend suggests that Alamo Group Inc has maintained a healthy level of interest coverage, which is essential for creditors and investors to assess the company's financial health.