BWX Technologies Inc (BWXT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.44 | 0.49 | 0.48 | 0.38 | 0.42 |
| Debt-to-capital ratio | 0.56 | 0.63 | 0.65 | 0.58 | 0.67 |
| Debt-to-equity ratio | 1.29 | 1.71 | 1.87 | 1.40 | 2.00 |
| Financial leverage ratio | 2.94 | 3.50 | 3.93 | 3.71 | 4.72 |
The solvency ratios of BWX Technologies Inc indicate the company's ability to meet its long-term debt obligations.
1. Debt-to-assets ratio: This ratio has ranged from 0.41 to 0.49 over the past five years, with a lower ratio indicating a lower reliance on debt to finance assets. The decreasing trend from 2020 to 2023 suggests improved asset coverage by equity.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital that is financed through debt. BWX Technologies Inc's ratio has fluctuated between 0.56 and 0.67, with a decreasing trend indicating a lower reliance on debt in the company's capital structure.
3. Debt-to-equity ratio: This ratio has ranged from 1.30 to 2.04, reflecting the company's debt relative to equity. A decreasing trend is evident from 2021 to 2023, indicating a lower level of debt relative to equity, which is generally considered favorable for solvency.
4. Financial leverage ratio: This ratio has fluctuated between 2.94 and 4.72 over the five-year period. A decreasing trend from 2019 to 2023 indicates a lower level of financial leverage, implying that the company is relying less on debt to finance its operations.
Overall, the solvency ratios of BWX Technologies Inc suggest a relatively stable financial position, with a decreasing trend in the levels of debt relative to assets, capital, equity, and leverage over the five-year period. This trend indicates an improved ability to meet long-term debt obligations and suggests a strengthening solvency position for the company.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.82 | 9.62 | 12.05 | 12.66 | 9.87 |
The interest coverage ratio for BWX Technologies Inc has been relatively stable over the past five years, ranging from a low of 8.60 in 2023 to a high of 11.71 in 2020. This ratio indicates the company's ability to cover its interest expenses with its operating income.
A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its operating earnings. BWX Technologies Inc's interest coverage ratios in the range of 8.60 to 11.71 over the past five years indicate a healthy ability to service its debt through its operating profits.
Overall, the consistent levels of interest coverage over the years suggest that BWX Technologies Inc has been effectively managing its interest expenses relative to its operating income, which is a positive indicator of financial health and stability.