Allegheny Technologies Incorporated (ATI)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.63 | 3.82 | 3.71 | 3.91 | 4.25 | 5.27 | 5.54 | 6.43 | 6.25 | 8.55 | 8.40 | 8.43 | 7.74 | 2.92 | 2.98 | 2.78 | 2.70 | 2.60 | 2.74 | 2.84 |
Based on the solvency ratios of ATI Inc provided in the table, we can observe the following trends:
Debt-to-assets ratio:
- The debt-to-assets ratio has remained relatively stable over the past eight quarters, ranging between 0.39 and 0.46.
- This ratio indicates that, on average, roughly 40% to 46% of ATI Inc's assets are financed by debt.
Debt-to-capital ratio:
- Similarly, the debt-to-capital ratio has shown consistency over the quarters, hovering around 0.60 to 0.73.
- This ratio reflects that ATI Inc relies on debt for approximately 60% to 73% of its total capital structure.
Debt-to-equity ratio:
- The debt-to-equity ratio has fluctuated from 1.49 to 2.77 during the period under review.
- This ratio signifies that ATI Inc carries a significant portion of its financing through debt compared to equity, with the ratio ranging between 1.49 and 2.77.
Financial leverage ratio:
- The financial leverage ratio has exhibited significant variability, with values ranging from 3.63 to 6.43 across the quarters.
- A higher financial leverage ratio indicates greater reliance on debt financing, highlighting ATI Inc's potential financial risk and leverage in its operations.
In conclusion, the solvency ratios of ATI Inc suggest that the company has maintained a moderate level of debt relative to its assets, capital, and equity. However, the fluctuation in the financial leverage ratio warrants closer scrutiny, as it indicates varying levels of financial risk and leverage over the quarters. An in-depth analysis of ATI Inc's debt management strategies and overall financial health is recommended to assess its long-term solvency and stability.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 12.62 | 5.57 | 3.86 | 3.29 | 2.66 | 1.68 | 1.68 | 1.21 | -10.60 | -11.00 | -13.97 | -13.80 | -0.65 | -0.08 | 2.82 | 3.33 | 13.42 | 6.83 | 4.55 |
Interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that ATI Inc is better positioned to meet its interest obligations.
ATI Inc has shown a consistent improvement in its interest coverage ratio over the past eight quarters, from 1.75 in Q1 2022 to 5.10 in Q4 2023. This upward trend suggests that the company's earnings are increasing at a faster rate than its interest expenses, which is a positive sign for creditors and investors.
The current interest coverage ratio of 5.10 in Q4 2023 indicates that ATI Inc is generating more than five times the earnings needed to cover its interest expenses. This strong interest coverage ratio reflects a healthy financial position and implies a lower risk of default on its debt obligations.
Overall, ATI Inc's interest coverage ratios have shown significant improvement, indicating a strengthening financial performance and providing a positive outlook for the company's ability to meet its debt obligations in the future.