BWX Technologies Inc (BWXT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.44 | 0.49 | 0.48 | 0.38 |
| Debt-to-capital ratio | 0.49 | 0.56 | 0.63 | 0.65 | 0.58 |
| Debt-to-equity ratio | 0.97 | 1.29 | 1.71 | 1.87 | 1.40 |
| Financial leverage ratio | 2.66 | 2.94 | 3.50 | 3.93 | 3.71 |
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 shows the proportion of the company's assets financed by debt. It has increased from 0.38 in 2020 to 0.49 in 2022 but decreased to 0.36 in 2024. The decreasing trend in recent years indicates a reduction in the reliance on debt to finance assets.
2. Debt-to-capital ratio: This ratio reflects the extent to which a company is leveraged by debt relative to its total capital. It has fluctuated between 0.49 and 0.65 over the period. The downward trend from 2021 to 2024 suggests a decrease in the proportion of capital funded by debt.
3. Debt-to-equity ratio: This ratio measures the company's reliance on debt financing relative to shareholder equity. It has shown a downward trend from 1.87 in 2021 to 0.97 in 2024. This indicates a decreasing reliance on debt in comparison to equity for financing operations and expansion.
4. Financial leverage ratio: This ratio indicates the company's ability to meet its financial obligations through debt. The ratio has decreased from 3.93 in 2021 to 2.66 in 2024, indicating an improvement in the company's financial leverage and potentially lower financial risk.
Overall, the decreasing trends in the debt-to-capital, debt-to-equity, and financial leverage ratios suggest BWX Technologies Inc has strengthened its financial position and reduced its reliance on debt for funding, which may enhance its solvency and financial stability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.79 | 7.82 | 9.62 | 12.05 | 12.66 |
Based on the provided data, the interest coverage ratio of BWX Technologies Inc has been gradually declining over the years. In December 2020, the interest coverage ratio stood at 12.66, indicating that the company generated 12.66 times the earnings to cover its interest expense.
However, by December 2024, the interest coverage ratio had decreased to 5.79. This reduction suggests that the company's ability to meet its interest payments from its operating income has weakened over the years. A decreasing trend in the interest coverage ratio could raise concerns about the company's financial health and its ability to service its debt obligations comfortably.
It is important for investors and stakeholders to closely monitor this trend and assess the underlying reasons for the declining interest coverage ratio to determine the company's financial strength and risk profile accurately.