BWX Technologies Inc (BWXT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.41 | 0.42 | 0.44 | 0.44 | 0.48 | 0.49 | 0.50 | 0.49 | 0.50 | 0.51 | 0.51 | 0.48 | 0.50 | 0.31 | 0.43 | 0.38 | 0.42 | 0.42 | 0.46 |
| Debt-to-capital ratio | 0.49 | 0.54 | 0.55 | 0.56 | 0.56 | 0.60 | 0.61 | 0.63 | 0.63 | 0.65 | 0.66 | 0.66 | 0.65 | 0.68 | 0.53 | 0.61 | 0.58 | 0.62 | 0.63 | 0.68 |
| Debt-to-equity ratio | 0.97 | 1.15 | 1.21 | 1.29 | 1.29 | 1.53 | 1.58 | 1.73 | 1.71 | 1.88 | 1.96 | 1.97 | 1.87 | 2.17 | 1.11 | 1.55 | 1.40 | 1.64 | 1.72 | 2.12 |
| Financial leverage ratio | 2.66 | 2.78 | 2.84 | 2.95 | 2.94 | 3.18 | 3.26 | 3.45 | 3.50 | 3.75 | 3.84 | 3.89 | 3.93 | 4.31 | 3.62 | 3.58 | 3.71 | 3.86 | 4.09 | 4.58 |
The solvency ratios of BWX Technologies Inc indicate its ability to meet its long-term financial obligations.
1. Debt-to-Assets Ratio: This ratio measures the proportion of the company's assets financed by debt. BWX Technologies Inc's debt-to-assets ratio shows a declining trend from 0.46 in March 2020 to 0.36 in December 2024. This indicates that the company has been reducing its reliance on debt to finance its assets over the years.
2. Debt-to-Capital Ratio: This ratio assesses the proportion of the company's capital structure that is financed by debt. The debt-to-capital ratio of BWX Technologies Inc has also shown a decreasing trend, from 0.68 in March 2020 to 0.49 in December 2024. This signifies a decreasing dependency on debt in the company's overall capital structure.
3. Debt-to-Equity Ratio: The debt-to-equity ratio indicates the proportion of financing provided by creditors versus shareholders. BWX Technologies Inc's debt-to-equity ratio has decreased from 2.12 in March 2020 to 0.97 in December 2024. This indicates a significant reduction in the company's financial leverage over the period.
4. Financial Leverage Ratio: This ratio measures the extent to which the company is using debt to finance its operations. The financial leverage ratio of BWX Technologies Inc has also decreased steadily, from 4.58 in March 2020 to 2.66 in December 2024. This demonstrates a declining reliance on debt to generate returns for the company.
Overall, the solvency ratios of BWX Technologies Inc suggest a positive trend towards a stronger financial position, with decreasing debt levels and improved financial leverage over the years.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.77 | 9.29 | 8.67 | 8.19 | 7.82 | 7.27 | 7.72 | 8.87 | 9.62 | 13.63 | 12.81 | 11.65 | 12.05 | 10.27 | 11.80 | 12.80 | 12.66 | 12.11 | 11.79 | 11.08 |
BWXT Technologies Inc's interest coverage ratio has shown some fluctuation over the reporting periods provided. The interest coverage ratio measures the company's ability to meet its interest payments on its debt obligations. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the data, BWXT's interest coverage ratio ranged from a low of 7.27 on September 30, 2023, to a high of 13.63 on September 30, 2022. Overall, the company's interest coverage ratio has generally been above 10 in most periods, indicating a strong ability to cover its interest payments from its operating income.
It is noteworthy that the interest coverage ratio declined towards the end of the data set, with a ratio of 9.77 on December 31, 2024, which is still above the threshold of 1 where a company's operating income is just sufficient to cover its interest expenses. This trend may warrant further monitoring to ensure the company's ability to continue meeting its interest obligations.
In conclusion, BWXT Technologies Inc has maintained a relatively healthy interest coverage ratio, which indicates a solid ability to meet its interest payments from its operating income. However, the recent decrease in the ratio suggests the need for ongoing monitoring to assess the company's financial health and debt repayment capacity.