Crane Company (CR)

The solvency ratios for Crane Company indicate a very strong financial position in terms of its ability to meet its long-term obligations and manage risk.

1. Debt-to-assets ratio: The ratio is consistently at 0.00 over the years from 2020 to 2024, indicating that Crane Company has no debt in relation to its total assets. This suggests that the company is not relying on debt to finance its operations or investments, which is a positive sign for solvency.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 for all the years, indicating that the company is not using debt to fund its capital structure. This implies that Crane Company's capital is primarily sourced from equity, reducing financial risk.

3. Debt-to-equity ratio: The debt-to-equity ratio also stays at 0.00 consistently across the years, highlighting the absence of debt in relation to equity. This indicates that the company has a low level of financial leverage and is less dependent on external borrowing for its operations and investments.

4. Financial leverage ratio: The financial leverage ratio shows a decreasing trend from 3.00 in 2020 to 1.61 in 2024. This downward trend suggests that Crane Company is reducing its reliance on debt financing and becoming more financially stable over the years.

Overall, based on these solvency ratios, Crane Company appears to have a very strong financial position with minimal debt levels and a conservative capital structure. This indicates a low risk of default and reflects positively on the company's ability to weather economic downturns and maintain stability in the long term.

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Coverage ratios

Interest coverage ratio is a financial metric used to evaluate a company's ability to pay its interest expenses on outstanding debt using its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

For Crane Company, the interest coverage ratio has shown fluctuations over the years. In December 31, 2020, the interest coverage ratio was 4.65, indicating that the company's operating income was sufficient to cover its interest expenses nearly 5 times. Subsequently, in December 31, 2021, the interest coverage ratio improved significantly to 11.17, reflecting a stronger ability to cover interest payments.

However, in the following years, the interest coverage ratio decreased to 5.39 in December 31, 2022, before increasing notably to 12.76 in December 31, 2023, and further to 13.44 in December 31, 2024. These improvements suggest that Crane Company's operating performance improved, enabling it to comfortably cover its interest expenses with its operating income.

Overall, the trend in Crane Company's interest coverage ratio shows both fluctuations and improvements, indicating the company's varying ability to meet its interest obligations over the analyzed period.