Clean Harbors Inc (CLH)
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 | 0.38 | 0.38 | 0.39 | 0.40 | 0.36 | 0.37 | 0.38 | 0.40 | 0.39 | 0.41 | 0.42 | 0.44 | 0.45 | 0.36 | 0.36 | 0.37 | 0.38 | 0.38 | 0.40 | 0.41 |
| Debt-to-capital ratio | 0.52 | 0.52 | 0.53 | 0.55 | 0.50 | 0.51 | 0.52 | 0.55 | 0.56 | 0.58 | 0.59 | 0.61 | 0.62 | 0.51 | 0.52 | 0.53 | 0.54 | 0.54 | 0.56 | 0.59 |
| Debt-to-equity ratio | 1.08 | 1.10 | 1.14 | 1.20 | 1.02 | 1.05 | 1.09 | 1.22 | 1.26 | 1.36 | 1.46 | 1.58 | 1.66 | 1.06 | 1.10 | 1.15 | 1.16 | 1.19 | 1.30 | 1.41 |
| Financial leverage ratio | 2.87 | 2.89 | 2.92 | 3.00 | 2.84 | 2.86 | 2.89 | 3.07 | 3.19 | 3.30 | 3.45 | 3.59 | 3.73 | 2.98 | 3.03 | 3.08 | 3.08 | 3.15 | 3.25 | 3.43 |
Clean Harbors Inc's solvency ratios show a mixed trend over the periods analyzed. The Debt-to-assets ratio decreased from 0.41 in March 2020 to 0.36 in December 2023, indicating a more stable financial position in terms of asset coverage by debt. However, there was a slight increase to 0.38 by December 2024.
The Debt-to-capital ratio followed a similar pattern, declining from 0.59 in March 2020 to 0.50 in December 2023 and then rising to 0.52 by December 2024. This ratio shows the proportion of debt in the company's capital structure, with lower values generally being favorable.
The Debt-to-equity ratio also displayed a decreasing trend from 1.41 in March 2020 to 1.02 in December 2023, suggesting a reduced reliance on debt financing. However, this ratio increased slightly to 1.08 by December 2024, indicating a higher proportion of debt relative to equity.
The Financial leverage ratio, which reflects the extent of a company's leverage, decreased from 3.43 in March 2020 to 2.84 in December 2023 before slightly increasing to 2.87 by December 2024. A lower financial leverage ratio indicates less reliance on debt and lower financial risk.
In summary, Clean Harbors Inc's solvency ratios generally showed improvement in the middle of the period but experienced some fluctuations towards the end, with a slight uptick in debt levels by December 2024. Monitoring these ratios can provide insights into the company's ability to meet its financial obligations and manage its debt levels effectively.
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 | 59.31 | 45.52 | 48.13 | 52.06 | 58.05 | 68.02 | 81.82 | 92.72 | 99.01 | 22.49 | 11.04 | 6.21 | 4.36 | 4.40 | 4.11 | 3.41 | 3.28 | 4.14 | 5.94 | 11.97 |
Clean Harbors Inc's interest coverage ratio has shown fluctuations over the period from March 2020 to December 2024. The interest coverage ratio measures the company's ability to meet its interest payments using its operating income. A higher interest coverage ratio indicates a greater ability to fulfill interest obligations.
Initially, in March 2020, Clean Harbors Inc had a healthy interest coverage ratio of 11.97, indicating a strong ability to cover interest expenses. However, this ratio subsequently decreased significantly to 3.28 by December 2020, indicating a potential strain on the company's ability to cover its interest payments.
The trend continued to be downward until June 2021, with the interest coverage ratio remaining below 5. However, there was a slight improvement in the ratio from March 2022 to June 2022, where it increased from 6.21 to 11.04, suggesting a better ability to cover interest expenses during that period.
From September 2022 onwards, there was a significant and consistent improvement in the interest coverage ratio, reaching a peak of 99.01 by December 2022, and then stabilizing at relatively high levels between 45.52 and 68.02 from September 2023 to December 2024. This indicates a strong and consistent ability to cover interest payments with operating income during this period.
Overall, the analysis of Clean Harbors Inc's interest coverage ratio shows both periods of strength and weakness, with the company making significant improvements in managing its interest obligations from 2022 onwards.