Brunswick Corporation (BC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 28.39 | 2.98 | 3.10 | 2.83 | 2.50 |
Based on the provided data, Brunswick Corporation's solvency ratios paint a picture of strong financial health and low leverage over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all consistently remained at 0.00 from December 31, 2020, to December 31, 2024. These ratios indicate that the company's assets are primarily financed by equity rather than debt.
However, there is a notable increase in Brunswick Corporation's Financial leverage ratio from 2.50 in 2020 to 28.39 in 2024. While historically low debt levels are positive for solvency, such a sudden spike in the financial leverage ratio in 2024 may indicate a significant shift towards debt financing in that year. This could be a point of concern as higher leverage can increase financial risk and impact the company's ability to meet its debt obligations.
Overall, Brunswick Corporation has maintained a strong solvency position with minimal reliance on debt financing. Still, monitoring the trend of the Financial leverage ratio will be essential to assess any potential risks arising from increased leverage in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.61 | 6.54 | 9.71 | 12.18 | 8.03 |
Interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio suggests that the company is more capable of servicing its debt.
Analyzing the interest coverage ratios of Brunswick Corporation over the years reveals fluctuations in its ability to cover interest expenses. In 2020, the interest coverage ratio was 8.03, indicating that the company generated earnings 8.03 times greater than its interest expenses. This ratio improved significantly in 2021 to 12.18, reflecting a stronger financial position and increased profitability.
However, the interest coverage declined in 2022 to 9.71, albeit still at a healthy level, before dropping further to 6.54 in 2023. This decrease may raise concerns about the company's ability to comfortably meet its interest obligations with its earnings. In 2024, the interest coverage ratio decreased significantly to 2.61, signaling a potential risk as earnings may no longer sufficiently cover interest costs.
Overall, Brunswick Corporation has shown varying levels of ability to cover its interest expenses over the years, with a notable decline in 2024. Investors and stakeholders should closely monitor these trends to assess the company's financial health and debt servicing capacity.