Brunswick Corporation (BC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.32 | 0.38 | 0.33 | 0.24 | 0.30 |
| Debt-to-capital ratio | 0.49 | 0.54 | 0.48 | 0.38 | 0.45 |
| Debt-to-equity ratio | 0.95 | 1.18 | 0.93 | 0.60 | 0.82 |
| Financial leverage ratio | 2.98 | 3.10 | 2.83 | 2.50 | 2.74 |
Based on the data provided, we can see a trend in Brunswick Corp.'s solvency ratios over the past five years.
1. Debt-to-assets ratio: The company's debt-to-assets ratio has fluctuated between 0.25 and 0.40, indicating the proportion of the company's assets financed by debt. The ratio decreased from 0.40 in 2022 to 0.39 in 2023, suggesting a slight improvement in the company's ability to cover its assets with debt.
2. Debt-to-capital ratio: Brunswick Corp.'s debt-to-capital ratio has ranged from 0.39 to 0.55 over the past five years. This ratio decreased from 0.55 in 2022 to 0.54 in 2023, showing a slight improvement in the company's capital structure and debt financing relative to its total capital.
3. Debt-to-equity ratio: The company's debt-to-equity ratio has varied between 0.63 and 1.23 over the period. A lower debt-to-equity ratio indicates a lower financial risk, and the ratio decreased from 1.23 in 2022 to 1.16 in 2023, which could signify a reduction in the company's reliance on debt to finance its operations.
4. Financial leverage ratio: The financial leverage ratio, which measures the company's total assets relative to equity, has fluctuated between 2.50 and 3.10. A higher financial leverage ratio indicates higher financial risk. The ratio decreased from 3.10 in 2022 to 2.98 in 2023, suggesting a slight improvement in the company's leverage position.
Overall, Brunswick Corp.'s solvency ratios have shown different trends over the years, with some improvement in certain ratios in 2023 compared to the previous year. It is essential to monitor these ratios to understand the company's financial health and ability to meet its debt obligations in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.49 | 9.66 | 12.14 | 7.99 | 0.33 |
Brunswick Corp.'s interest coverage ratio has displayed fluctuating trends over the past five years, ranging from 6.84 in 2019 to 12.79 in 2021. The ratio indicates the company's ability to meet its interest obligations using its operating income and signifies its financial stability and creditworthiness to creditors.
The ratios of 10.62 in 2022 and 7.61 in 2023 suggest that Brunswick Corp.'s ability to cover its interest payments with operating income has slightly declined. While the company's interest coverage remains relatively healthy, the decreasing trend may raise concerns about its future ability to service debt obligations. It is important for investors and creditors to monitor future interest coverage ratios to ensure the company can continue meeting its financial commitments.