Autoliv Inc (ALV)
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 | 3.43 | 3.63 | 3.48 | 3.43 | 3.26 | 3.23 | 3.13 | 3.12 | 2.95 | 2.96 | 2.76 | 2.92 | 2.86 | 2.94 | 2.94 | 3.27 | 3.39 | 3.73 | 3.70 | 3.43 |
Autoliv Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 over the past few years. This suggests that the company's level of debt is negligible compared to its total assets, capital, and equity.
Furthermore, the financial leverage ratio, which measures the proportion of a company's debt to its equity, has generally been decreasing over the period in consideration. This demonstrates that Autoliv Inc has been reducing its reliance on debt financing in relation to its equity, which is a positive sign of financial stability and lower risk.
Overall, the solvency ratios reflect Autoliv Inc's prudent financial management and solid financial health, indicating that the company is well-positioned to meet its financial obligations and sustain its operations efficiently in the long term.
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 | 9.13 | 8.32 | 8.56 | 7.77 | 7.58 | 7.98 | 8.19 | 10.02 | 11.10 | 11.00 | 9.94 | 10.07 | 11.23 | 12.17 | 12.32 | 6.86 | 5.39 | 4.59 | 4.15 | 9.94 |
Autoliv Inc's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to make interest payments on its debt using its operating income.
Initially, in March 2020, the interest coverage was 9.94, indicating the company's ability to cover its interest expense almost 10 times. However, this ratio decreased to 4.15 by June 2020, reflecting a deterioration in the company's ability to cover its interest obligations.
Subsequently, there was an improvement in the ratio, reaching its peak at 12.32 in June 2021, suggesting a significant increase in the company's operating income relative to its interest expenses during that period.
Although there were fluctuations throughout the following years, the interest coverage ratio generally stayed above 7, indicating that Autoliv Inc was able to comfortably cover its interest payments using its operating income. The ratio ranged between 7.58 to 12.32 from December 31, 2020, to June 30, 2024.
Overall, the trend in interest coverage for Autoliv Inc demonstrates variability in the company's ability to service its debt obligations with its operating profits. Investors and creditors typically view higher interest coverage ratios more favorably as they indicate a greater ability to manage debt payments.