Astec Industries Inc (ASTE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.64 | 1.62 | 1.62 | 1.39 | 1.32 |
Astec Industries Inc has consistently maintained a very strong position in terms of solvency ratios over the years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00 from December 31, 2020, to December 31, 2024, indicating that the company has no long-term debt relative to its assets, capital, or equity.
The financial leverage ratio, however, has shown a slight increasing trend from 1.32 in 2020 to 1.64 in 2024. While this indicates a gradual increase in financial leverage, it is still at a relatively low level overall. A financial leverage ratio below 2 is generally considered healthy, suggesting that the company is not overly reliant on debt to finance its operations.
Overall, Astec Industries Inc's solvency ratios suggest a very healthy financial position with minimal debt levels, which bodes well for the company's financial stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.30 | 5.81 | 17.28 | 28.27 | 70.14 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. Astec Industries Inc's interest coverage has shown a significant decline over the years based on the provided data.
As of December 31, 2020, the interest coverage ratio stood at a healthy 70.14, reflecting a strong ability to cover interest expenses with operating income. However, the ratio decreased to 28.27 by December 31, 2021, indicating a potential decrease in earnings relative to interest obligations.
The trend continued with the interest coverage ratio declining further to 17.28 by December 31, 2022, 5.81 by December 31, 2023, and reaching a concerning level of 2.30 by December 31, 2024. A ratio below 1 could signify that the company is having difficulty meeting its interest payments from its operating income.
The decreasing interest coverage ratios suggest that Astec Industries Inc may be facing challenges in generating enough operating income to cover its interest expenses adequately. This trend raises concerns about the company's financial health and ability to service its debt obligations in the future. Investors and creditors should closely monitor Astec's financial performance to assess the impact of declining interest coverage on its overall financial stability.