Allegheny Technologies Incorporated (ATI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 3.63 | 4.25 | 6.25 | 7.74 | 2.70 |
The solvency ratios of ATI Inc provide insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. ATI Inc's debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.25 in 2019 to 0.44 in 2023. This indicates that, on average, 44% of the company's total assets are financed by debt.
2. Debt-to-capital ratio: This ratio shows the extent to which a company is leveraged through debt. ATI Inc's debt-to-capital ratio has fluctuated between 0.61 in 2023 to 0.75 in 2020, suggesting that debt accounts for about 61% to 75% of the company's total capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio reflects the company's reliance on debt versus equity financing. ATI Inc's debt-to-equity ratio has varied significantly over the years, from 0.67 in 2019 to 3.01 in 2020, indicating higher debt levels relative to equity in certain years.
4. Financial leverage ratio: This ratio measures the company's total debt in relation to its equity. ATI Inc's financial leverage ratio has ranged from 2.70 in 2019 to 7.74 in 2020, indicating a relatively high level of leverage in some years.
Overall, the trend in ATI Inc's solvency ratios suggests some variation in the company's capital structure and leverage levels over the past five years. It is important for stakeholders to monitor these ratios to assess the company's financial risk and capacity to repay its debts.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.76 | 2.84 | 1.12 | -12.43 | 3.33 |
Interest coverage, a key financial ratio that measures a company's ability to cover its interest expenses with its operating income, has shown improvement for ATI Inc over the last five years. The interest coverage ratio increased steadily from 3.66 in 2019 to 5.10 in 2023, indicating that the company's ability to meet its interest obligations has strengthened over time.
In 2021, the interest coverage ratio was relatively low at 1.10, suggesting that ATI Inc may have faced challenges in covering its interest expenses with its operating income during that year. However, the ratio improved significantly in the following years, reaching a peak of 5.10 in 2023.
Overall, the increasing trend in the interest coverage ratio for ATI Inc is a positive sign, indicating that the company's financial health in terms of meeting its interest obligations has improved over the years.