Autoliv Inc (ALV)
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 | 3.43 | 3.26 | 2.95 | 2.86 | 3.39 |
Autoliv Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios all stand at 0.00 across the years 2020 to 2024, demonstrating that the company's debt burden is effectively non-existent in relation to its total assets, capital structure, and shareholder equity.
Additionally, the financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, shows a reasonable range from 2.86 to 3.43 during the same period. This suggests that Autoliv has been utilizing a moderate level of financial leverage to support its operations, with a slight increase in leverage observed from 2021 to 2024.
In conclusion, Autoliv Inc's solvency ratios paint a picture of a company with minimal debt obligations and a conservative approach to financial leverage, indicating a solid financial foundation and strong ability to meet its long-term financial commitments.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.10 | 7.58 | 11.05 | 11.23 | 4.99 |
Autoliv Inc's interest coverage ratio has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations with its operating earnings. In December 31, 2020, the interest coverage ratio was 4.99, demonstrating that the company earned nearly five times the amount needed to cover its interest expense. The ratio improved significantly to 11.23 by December 31, 2021, and remained relatively strong at 11.05 in December 31, 2022. However, there was a slight decrease in the interest coverage ratio to 7.58 by December 31, 2023, suggesting a possible reduction in the company's operating earnings relative to its interest expenses. This was followed by an uptick to 9.10 by December 31, 2024, indicating a recovery in the company's ability to cover its interest payments. Overall, Autoliv Inc's interest coverage has generally been healthy, with strong ratios in recent years, although some fluctuations were observed.