Axalta Coating Systems Ltd (AXTA)
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 | 0.48 | 0.00 | 0.00 | 0.00 | 0.52 | 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 | 0.67 | 0.00 | 0.00 | 0.00 | 0.72 | 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 | 2.01 | 0.00 | 0.00 | 0.00 | 2.53 | 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 | 4.21 | 4.36 | 4.28 | 4.46 | 4.86 | 5.36 | 5.23 | 5.15 | 4.83 | 5.02 | 4.84 | 5.16 | 4.99 | 5.25 | 5.50 | 4.95 | 5.03 | 5.20 | 5.34 | 5.53 |
Axalta Coating Systems Ltd's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The trend shows a slight decrease from Q1 2022 to Q4 2023, indicating improved asset coverage by equity and potential lower financial risk.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital structure funded by debt. The values have fluctuated over the period, but overall, there is a slight declining trend. This suggests that the company is relying less on debt to finance its operations.
3. Debt-to-equity ratio: This ratio shows the extent to which debt is used to finance the company compared to equity. The trend indicates a decrease from Q1 2022 to Q4 2023, implying a reduction in financial leverage and potential improvement in financial stability.
4. Financial leverage ratio: This ratio measures the company's financial leverage by comparing total assets to total equity. The trend shows a decline from Q1 2022 to Q4 2023, indicating a decreasing reliance on debt and potential enhancement in financial strength.
In summary, the solvency ratios for Axalta Coating Systems Ltd demonstrate a general improvement over the period, with decreasing levels of debt relative to assets, capital, equity, and leverage. This suggests a positive trajectory in the company's ability to meet its long-term financial obligations and manage financial risk. However, continued monitoring of these ratios is advisable to ensure ongoing financial stability and performance.
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 | 2.66 | 2.57 | 2.65 | 2.80 | 2.84 | 2.95 | 3.03 | 3.80 | 3.53 | 3.68 | 3.61 | 1.77 | 1.81 | 1.64 | 1.54 | 2.88 | 3.01 | 3.07 | 2.57 | 2.47 |
The interest coverage ratio for Axalta Coating Systems Ltd has been relatively stable over the past eight quarters, ranging from 2.73 to 3.72. This indicates the company's ability to meet its interest payment obligations from its operating earnings.
In general, an interest coverage ratio above 1.5 is considered healthy, as it suggests that the company is generating sufficient operating income to cover its interest expenses. Axalta's interest coverage ratios consistently above 2 demonstrate a strong ability to meet its interest payments comfortably.
The slight fluctuations in the interest coverage ratio over the quarters do not raise significant concerns, as the ratios remain consistently above the acceptable threshold. However, it is important to monitor future trends to ensure that the company continues to generate enough earnings to cover its interest costs and maintain financial stability.