Antero Midstream Partners LP (AM)

The solvency ratios of Antero Midstream Partners LP indicate the company's ability to meet its long-term obligations and its financial leverage over the years.

1. Debt-to-assets ratio has shown a slight increasing trend from 0.55 in 2020 to 0.54 in 2024. This ratio indicates that 55% to 58% of the company's assets are financed by debt, showing relatively stable leverage on assets.

2. Debt-to-capital ratio has also increased steadily from 0.56 in 2020 to 0.60 in 2024, suggesting that 56% to 60% of the company's capital structure is funded by debt, indicating a slightly growing reliance on debt capital.

3. Debt-to-equity ratio has shown a pattern of increase from 1.28 in 2020 to 1.47 in 2024, indicating that the proportion of debt in relation to equity has been rising, which may reflect a higher financial risk and a weaker creditor protection.

4. Financial leverage ratio has steadily increased from 2.32 in 2020 to 2.72 in 2024, indicating a consistent rise in financial leverage and risk. This metric shows the multiplier effect of debt on the company's equity, which has been growing over the years.

Overall, the trend in these solvency ratios suggests a progressive increase in leverage and debt reliance by Antero Midstream Partners LP, which may potentially result in higher financial risk and lower financial flexibility in the future. It would be essential for stakeholders to closely monitor these ratios to assess the company's solvency and long-term financial health.

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Coverage ratios

Antero Midstream Partners LP's interest coverage has shown significant fluctuations over the years based on the provided data. The interest coverage ratio indicates the company's ability to meet interest payments on its debt using its earnings before interest and taxes (EBIT).

In December 31, 2020, the interest coverage ratio was -26.12, which suggests that the company's EBIT was insufficient to cover its interest expenses, raising concerns about its financial health.

However, by December 31, 2021, the interest coverage ratio improved substantially to 100.08, indicating that the company's earnings were more than sufficient to cover its interest obligations. This significant improvement may signal better financial stability and reduced default risk.

Subsequently, the interest coverage ratio remained relatively strong in the following years, with values of 94.38 in December 31, 2022, 102.34 in December 31, 2023, and 109.79 in December 31, 2024. These consistently high ratios suggest that the company has maintained a robust ability to meet its interest payments using its operating profits.

Overall, the trend of increasing interest coverage ratios from a notably low level in 2020 to a more stable and healthy level in the subsequent years indicates an improvement in Antero Midstream Partners LP's financial position and its capacity to manage its debt obligations effectively.