Amentum Holdings Inc. (AMTM)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.39 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.51 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 1.04 | 0.00 | 0.00 | — |
| Financial leverage ratio | 2.68 | 2.68 | 17.14 | 1.29 | — |
Amentum Holdings Inc.'s solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio indicates the proportion of the company's assets financed by debt. Amentum had no debt relative to its total assets in 2022 and 2023, but it experienced a slight increase in leverage in the third quarter of 2024, with a ratio of 0.39.
The Debt-to-capital ratio measures the extent to which a company is leveraged using its capital structure. Amentum maintained a low level of debt relative to capital in 2022 and 2023, but this ratio increased to 0.51 in the third quarter of 2024.
The Debt-to-equity ratio highlights the company's reliance on debt financing compared to equity. Amentum had a debt-to-equity ratio of 0.00 in 2022 and 2023, indicating minimal debt relative to equity. However, this ratio increased significantly to 1.04 in the third quarter of 2024, suggesting a higher reliance on debt financing compared to equity.
The Financial leverage ratio provides a broader view of the company's financial leverage. Amentum had no data available for this ratio in 2021, but it significantly increased its leverage in 2023 before stabilizing at 2.68 in the third quarter and as of the year-end in 2024.
Overall, Amentum Holdings Inc.'s solvency ratios suggest a generally low level of debt compared to its assets and equity in 2022 and 2023. However, there has been a noticeable increase in leverage and reliance on debt financing in 2024, which may require monitoring for potential impacts on the company's solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.72 | — | 0.14 | 0.58 | — |
Interest coverage ratio measures a company's ability to cover its interest expenses with its earnings. A higher ratio indicates a stronger ability to meet interest obligations.
In the case of Amentum Holdings Inc., the interest coverage ratio has shown fluctuations over the given periods. As of December 31, 2022, the ratio was 0.58, indicating that the company's earnings were only able to cover interest expenses 0.58 times. This suggests a potential challenge in meeting interest payments using its current earnings.
By December 31, 2023, the interest coverage ratio declined further to 0.14, signaling a significant decrease in the company's ability to cover interest costs. This could indicate a strain on the company's financial position and its capacity to service debt.
The data for September 30, 2024, is not available, but by December 31, 2024, the interest coverage ratio improved slightly to 0.72. While the increase is positive, the ratio still remains below 1, implying that the company may continue to face difficulties in meeting its interest obligations solely through earnings.
Overall, based on the fluctuations in the interest coverage ratio for Amentum Holdings Inc., it appears that the company may have been experiencing challenges in generating sufficient earnings to cover its interest expenses during the specified periods. This could warrant further analysis and attention to the company's financial health and debt management strategies.