American Axle & Manufacturing (AXL)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 8.99 | 8.65 | 8.75 | 8.64 | 8.85 | 8.92 | 8.54 | 8.77 | 8.72 | 11.67 | 12.29 | 11.82 | 12.31 | 13.04 | 13.24 | 14.79 | 15.97 | 17.43 | 30.86 | 15.87 |
American Axle & Manufacturing consistently maintained a strong solvency position over the analyzed periods, as indicated by its low levels of debt in relation to assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios remained at 0.00 throughout the time frame, indicating that the company operated with minimal debt burden relative to its total assets, capital structure, and shareholder equity.
Additionally, the financial leverage ratio steadily decreased from 15.87 on March 31, 2020, to 8.99 by December 31, 2024. This progressive decline in the financial leverage ratio suggests that the company effectively reduced its reliance on debt financing over the years, which is a positive indicator of financial health and stability.
Overall, American Axle & Manufacturing's solvency ratios demonstrate prudent financial management practices and a conservative capital structure, reflecting the company's ability to meet its financial obligations comfortably and sustainably.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.35 | 1.30 | 1.18 | 1.04 | 0.84 | 1.00 | 1.26 | 1.32 | 1.56 | 1.17 | 0.92 | 0.87 | 1.12 | 1.74 | 2.34 | 1.01 | -1.71 | -4.24 | -5.49 | -3.94 |
The interest coverage ratio of American Axle & Manufacturing has shown a fluctuating trend over the past few years. The ratio was negative in the periods ending in March 2020, June 2020, September 2020, and December 2020, indicating that the company was not generating enough operating income to cover its interest expenses during those quarters.
However, there has been an improvement in the interest coverage ratio since March 2021, reaching positive territory. The ratio has since ranged between 0.87 and 2.34, reflecting the company's ability to cover its interest obligations with operating earnings.
While the ratio has fluctuated, it's essential to note that having a consistent positive interest coverage ratio is crucial for a company's financial health, as it indicates that the company is generating enough income to meet its interest payments. American Axle & Manufacturing should aim to maintain a healthy interest coverage ratio to ensure its long-term financial stability and ability to meet debt obligations.