Amentum Holdings Inc. (AMTM)

Amentum Holdings Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: The trend shows that as of December 31, 2022 and 2023, the company had a debt-to-assets ratio of 0.00, indicating that the company had no debt relative to its assets in those years. However, as of September 30, 2024, the ratio increased to 0.39, which suggests that 39% of the company's assets were funded by debt.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio was 0.00 for the years ending December 31, 2022 and 2023, indicating no debt relative to the total capital structure of the company. However, by September 30, 2024, the ratio increased to 0.51, indicating that 51% of the company's capital was funded by debt.

3. Debt-to-equity ratio: The debt-to-equity ratio was also 0.00 for the years ending December 31, 2022 and 2023, but it substantially increased to 1.04 by September 30, 2024. This implies that the company's debt outweighed its equity, indicating a higher level of financial leverage and potential risk.

4. Financial leverage ratio: The financial leverage ratio provides insights into the proportion of assets financed by debt. Amentum Holdings Inc.'s financial leverage ratio increased from 1.29 as of December 31, 2022, to 2.68 as of September 30, 2024. This significant increase suggests a higher reliance on debt financing, which may increase the company's financial risk and volatility.

Overall, the increasing trend in the solvency ratios, particularly the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, suggests that Amentum Holdings Inc. has been taking on more debt relative to its assets, capital, and equity over time. This could potentially increase the company's financial risk and impact its long-term financial stability and sustainability.

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Coverage ratios

The interest coverage ratio for Amentum Holdings Inc. is not available for the periods ending December 31, 2022, December 31, 2023, and September 30, 2024. The absence of this information prevents us from assessing the company's ability to meet its interest obligations using its operating income. Monitoring this ratio in the future will be important for understanding the company's financial health and risk of default.