Allegion PLC (ALLE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 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 | 2.99 | 3.27 | 4.23 | 4.00 | 3.70 |
Allegion PLC has consistently maintained a strong solvency position based on the solvency ratios analyzed. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all displayed a consistent trend of 0.00 from December 31, 2020 to December 31, 2024, indicating that the company's total debt is very low compared to its total assets, capital, and equity.
The Financial leverage ratio, on the other hand, has fluctuated over the same period. The ratio was highest in 2022 at 4.23, indicating higher financial leverage that year. However, it decreased to 2.99 by December 31, 2024, suggesting that Allegion may have reduced its reliance on debt or improved its financial structure in the subsequent years.
Overall, Allegion PLC's solvency ratios reflect a stable financial position with minimal debt compared to its assets, capital, and equity. The decreasing trend in the Financial leverage ratio indicates a potentially positive shift towards lower financial risk and improved solvency.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.85 | 7.63 | 7.78 | 11.44 | 8.15 |
The interest coverage ratio for Allegion PLC has shown some variability over the period. Starting at 8.15 in December 31, 2020, it increased to 11.44 in December 31, 2021, indicating an improvement in the company's ability to cover its interest expenses with operating income. However, this ratio decreased to 7.78 in December 31, 2022, 7.63 in December 31, 2023, and 7.85 in December 31, 2024.
An interest coverage ratio above 1 typically indicates that a company is capable of meeting its interest obligations from its earnings. Allegion PLC has generally maintained its interest coverage above 1, demonstrating that it has the ability to comfortably meet its interest payment obligations. However, the downward trend in the ratio from 2021 to 2024 may signal a slight decline in the company's ability to cover its interest expenses with its operating income, which could be worth further investigation to understand the underlying factors contributing to this trend.