Allegheny Technologies Incorporated (ATI)
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 | 2.83 | 3.63 | 4.25 | 6.25 | 7.74 |
Allegheny Technologies Incorporated has consistently maintained a strong solvency position, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which were reported as 0.00 across the years 2020 to 2024. This indicates that the company has minimal to no long-term debt in relation to its total assets, capital, and equity, respectively.
Furthermore, the financial leverage ratio, which measures the extent to which a company relies on debt financing, shows a declining trend from 7.74 in 2020 to 2.83 in 2024. This decreasing trend suggests that Allegheny Technologies Incorporated has been gradually reducing its reliance on debt to finance its operations and investments over the years, improving its financial stability and flexibility.
Overall, based on the solvency ratios provided, Allegheny Technologies Incorporated appears to have a solid financial structure with minimal debt obligations relative to its assets, capital, and equity, demonstrating a prudent approach to managing its financial leverage and ensuring long-term sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.91 | 5.03 | 5.11 | 1.11 | -15.40 |
Interest coverage ratio indicates a company's ability to meet its interest obligations with its operating income. Looking at Allegheny Technologies Incorporated's interest coverage over the years, there has been significant variability:
- As of December 31, 2020, the interest coverage ratio was -15.40, signaling that the company's operating income was insufficient to cover its interest expenses. This raises concerns about the company's financial health and ability to service its debt.
- In the next year, by December 31, 2021, the interest coverage improved to 1.11. While this is still a low ratio, it indicates a slight recovery in the company's ability to cover its interest costs.
- Subsequently, by December 31, 2022, the interest coverage further improved to 5.11, showing a more comfortable position in meeting interest obligations.
- However, looking at the data for December 31, 2023 and December 31, 2024, where the interest coverage ratios are 5.03 and 4.91 respectively, there seems to be some stability in the company's ability to cover interest expenses.
Overall, the fluctuation in interest coverage ratios over the years indicates the importance of monitoring Allegheny Technologies Incorporated's ability to manage its debt and generate sufficient operating income to meet its interest payments. Further analysis of the company's financial health and debt management practices would provide a more comprehensive assessment.