Allegion PLC (ALLE)
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 | 2.99 | 3.17 | 3.35 | 3.17 | 3.27 | 3.40 | 3.65 | 3.96 | 4.23 | 4.97 | 4.70 | 4.06 | 4.00 | 3.61 | 3.90 | 4.05 | 3.70 | 3.67 | 4.18 | 4.51 |
Allegion PLC's solvency ratios, including the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, have remained consistently low and stable throughout the analyzed period from March 31, 2020, to December 31, 2024.
The Debt-to-assets ratio indicates the proportion of the company's assets financed by debt, and in Allegion PLC's case, it has consistently remained at 0.00, suggesting a strong ability to cover its liabilities with its asset base.
Similarly, the Debt-to-capital ratio also stayed at 0.00 throughout the period, implying that the company's capital structure is primarily equity-funded rather than being reliant on debt financing.
Furthermore, the Debt-to-equity ratio, which compares the proportion of debt and equity in the company's capital structure, also remained at 0.00 consistently. This signifies that Allegion PLC has a low level of debt relative to its equity, indicating a healthy financial position.
Lastly, the Financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, exhibited a declining trend from 4.51 on March 31, 2020, to 2.99 on December 31, 2024. This decreasing trend indicates that the company has been reducing its reliance on debt over time, which is a positive signal for its solvency and financial stability.
Overall, Allegion PLC's solvency ratios suggest a robust financial position with minimal debt obligations and a healthy balance between debt and equity financing, providing a strong foundation for the company's long-term financial health and stability.
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 | 7.85 | 7.75 | 7.92 | 7.74 | 7.63 | 7.61 | 7.21 | 7.33 | 7.78 | 8.63 | 10.27 | 11.22 | 11.44 | 11.25 | 11.51 | 10.42 | 8.15 | 7.86 | 7.35 | 8.10 |
The interest coverage ratio for Allegion PLC has shown some fluctuations over the past few years, but overall it has remained relatively stable and healthy. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt.
From March 31, 2020, to June 30, 2021, Allegion's interest coverage steadily improved from 8.10 to 11.51, indicating a stronger ability to cover its interest expenses with operating earnings. This trend continued with minor fluctuations, reaching a peak of 11.44 on December 31, 2021.
However, starting from March 31, 2022, the interest coverage ratio began to decline, dropping to 7.21 by June 30, 2023. This decreasing trend suggested that Allegion's ability to cover interest expenses with operating income was weakening.
By the end of December 31, 2024, the interest coverage ratio had slightly recovered to 7.85, showing some stabilization. Overall, Allegion PLC has maintained a decent interest coverage ratio throughout the period examined, indicating the company's ability to comfortably meet its interest obligations with its earnings.