Autoliv Inc (ALV)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.16	0.16	0.16	0.20	0.14	0.14	0.15	0.21	0.22	0.22	0.22	0.25	0.26	0.26	0.36	0.32	0.25	0.28	0.27	0.24
Debt-to-capital ratio	0.34	0.34	0.34	0.38	0.29	0.30	0.29	0.38	0.39	0.40	0.40	0.45	0.47	0.49	0.57	0.52	0.45	0.48	0.48	0.45
Debt-to-equity ratio	0.52	0.52	0.51	0.61	0.40	0.42	0.42	0.62	0.63	0.66	0.66	0.81	0.88	0.96	1.32	1.09	0.82	0.91	0.91	0.82
Financial leverage ratio	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	3.21	3.32	3.35	3.45

Autoliv Inc.'s solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the quarters, indicating that around 22% to 27% of the company's total assets are financed by debt. This suggests a conservative approach to leveraging its assets.

The debt-to-capital ratio has also shown consistency, ranging from 0.39 to 0.45. This ratio reflects the proportion of the company's capital that is financed through debt, with values around 40% to 45%. Autoliv Inc. appears to have a balanced capital structure with a reasonable level of debt relative to its total capital.

The debt-to-equity ratio has fluctuated between 0.64 to 0.83 over the quarters, indicating varying levels of reliance on debt versus equity for financing. A lower ratio is generally preferred as it signifies less financial risk. Autoliv Inc.'s ratio has not exceeded 0.83, suggesting that the company has maintained a reasonable level of equity cushion to support its operations.

The financial leverage ratio, which measures the extent to which the company is utilizing debt, has shown an increasing trend from 2.76 to 3.26. This indicates that Autoliv Inc. has been relying more on debt to finance its operations, potentially increasing its financial risk. It is important for the company to monitor and manage its leverage ratio to avoid excessive financial strain.

Overall, Autoliv Inc.'s solvency ratios reflect a prudent approach to managing its financial obligations, with a balanced mix of debt and equity. However, the increasing trend in the financial leverage ratio warrants closer attention to ensure long-term financial sustainability.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	7.57	7.95	8.13	9.94	11.02	10.91	9.89	10.04	11.22	12.11	11.88	6.42	4.97	4.15	4.12	9.90	10.25	7.06	7.42	6.39

Autoliv Inc.'s interest coverage ratio has been consistently strong over the past eight quarters, ranging from 8.73 to 11.26. This indicates the company's ability to meet its interest obligations comfortably using its operating income. The upward trend in the interest coverage ratio over time suggests that Autoliv's earnings are consistently outpacing its interest expenses. This stable and relatively high level of interest coverage reflects the company's financial stability and capacity to manage its debt effectively. Overall, the trend in Autoliv Inc.'s interest coverage ratio indicates a healthy financial position and ability to service its debt obligations.