American Axle & Manufacturing (AXL)
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 | 0.52 | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 | 0.54 | 0.55 | 0.00 | 0.00 | 0.00 | 0.59 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 0.86 | 0.87 | 0.86 | 0.87 | 0.00 | 0.00 | 0.00 | 0.90 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 4.62 | 4.69 | 4.50 | 4.66 | 4.62 | 6.17 | 6.53 | 6.38 | 6.81 | 0.00 | 0.00 | 0.00 | 9.41 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 6.80 | 5.20 | 4.81 | 5.01 |
American Axle & Manufacturing Holdings Inc's solvency ratios indicate the company's ability to meet its financial obligations in the long term. The debt-to-assets ratio has remained relatively stable around 0.52 to 0.53 over the past few quarters, suggesting that approximately 52-53% of the company's assets are financed by debt.
The debt-to-capital ratio has also been consistent at around 0.82, indicating that debt accounts for approximately 82% of the company's capital structure. This ratio shows the proportion of total capital that is financed by debt.
The debt-to-equity ratio, which represents the amount of debt relative to shareholders' equity, has fluctuated between 4.45 to 4.66, showing that the company has a higher amount of debt compared to equity. A higher ratio indicates higher financial risk and reliance on debt financing.
The financial leverage ratio, which measures the company's total assets relative to shareholders' equity, has decreased from 11.67 in Q3 2022 to around 8.85 in Q4 2023. This indicates that the company has been able to reduce its financial leverage and reliance on debt financing to support its assets.
In summary, American Axle & Manufacturing Holdings Inc's solvency ratios reflect a stable debt structure with a significant reliance on debt financing. However, the decreasing financial leverage ratio suggests that the company is managing its debt levels effectively and improving its financial stability over time.
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 | 0.88 | 1.04 | 1.25 | 1.32 | 1.38 | 1.00 | 0.80 | 0.78 | 1.01 | 1.49 | 2.02 | 0.69 | -1.88 | -4.28 | -5.48 | -3.97 | -1.45 | -1.38 | -0.27 | 0.15 |
American Axle & Manufacturing Holdings Inc's interest coverage ratio has exhibited fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payment obligations using its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
In Q4 2023, the interest coverage ratio was 0.98, indicating a decline from the previous quarter. This suggests that the company's operating income was not sufficient to cover its interest payments for the period.
The trend in interest coverage ratio shows a gradual decline from Q4 2022 to Q4 2023, with the ratio decreasing from 1.74 to 0.98. This trend raises concerns about the company's ability to manage its debt obligations and could indicate potential financial distress.
Overall, the declining trend in American Axle & Manufacturing Holdings Inc's interest coverage ratio over the past eight quarters suggests a deterioration in the company's ability to cover its interest expenses with operating income. Management should closely monitor this ratio and take appropriate actions to improve the company's financial health.