Brinks Company (BCO)
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 | 21.19 | 16.61 | 11.16 | 22.04 | 25.36 |
Based on the provided data, Brinks Company shows strong solvency ratios across the board. 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. This indicates that Brinks Company has not taken on any debt relative to its total assets, capital, or equity during this period.
Additionally, the Financial leverage ratio fluctuated over the five-year period. It decreased from 25.36 in December 31, 2020, to 11.16 in December 31, 2022, then increased to 21.19 by December 31, 2024. While the financial leverage ratio indicates the proportion of a company's assets that are financed by debt, Brinks Company's decreasing trend from 2020 to 2022 followed by a slight increase in 2024 suggests a conservative approach to leveraging.
Overall, the consistent 0.00 values in the debt-related ratios coupled with the fluctuating but generally decreasing trend in the financial leverage ratio point towards a strong solvency position for Brinks Company, indicating a low reliance on debt financing and a stable financial structure over the period analyzed.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.13 | 2.16 | 2.65 | 3.00 | 1.72 |
Based on the data provided, Brinks Company's interest coverage has shown some fluctuations over the past five years.
As of December 31, 2020, the interest coverage ratio was relatively low at 1.72, indicating that Brinks Company's ability to cover its interest expenses with its earnings was limited.
However, there was a significant improvement in the interest coverage ratio by December 31, 2021, where it increased to a healthier level of 3.00. This suggests that Brinks Company had a stronger ability to cover its interest payments from its operating income.
Subsequently, the interest coverage ratio decreased slightly to 2.65 by December 31, 2022, and further dropped to 2.16 by December 31, 2023. Although still above the threshold of 1, these ratios indicate a slight decline in Brinks Company's ability to cover its interest expenses.
By December 31, 2024, the interest coverage ratio remained relatively stable at 2.13. While this indicates that Brinks Company's earnings are still able to cover its interest obligations, the downward trend in recent years may warrant further monitoring to ensure the company's financial health.