Carpenter Technology Corporation (CRS)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019
Debt-to-assets ratio 0.21 0.22 0.22 0.23 0.23 0.22 0.23 0.24 0.24 0.21 0.24 0.23 0.23 0.23 0.23 0.22 0.17 0.16 0.16 0.16
Debt-to-capital ratio 0.30 0.32 0.32 0.33 0.33 0.34 0.34 0.35 0.34 0.34 0.34 0.34 0.33 0.33 0.34 0.33 0.28 0.25 0.26 0.26
Debt-to-equity ratio 0.43 0.46 0.47 0.49 0.50 0.52 0.52 0.53 0.52 0.51 0.52 0.51 0.50 0.50 0.52 0.49 0.38 0.34 0.34 0.35
Financial leverage ratio 2.02 2.11 2.14 2.15 2.19 2.33 2.31 2.25 2.20 2.40 2.16 2.16 2.13 2.18 2.28 2.22 2.23 2.12 2.12 2.12

Carpenter Technology Corporation's solvency ratios show its ability to meet its long-term debt obligations and financial leverage over time. The debt-to-assets ratio has remained relatively stable around 0.22 to 0.24 since December 2019, indicating that a significant portion of the company's assets are financed through debt.

The debt-to-capital ratio and debt-to-equity ratio have also shown consistency, hovering between 0.30 to 0.34 and 0.43 to 0.53, respectively. These ratios suggest that Carpenter Technology relies moderately on debt to finance its operations, with the debt-to-equity ratio indicating that a higher proportion of the company's capital structure is debt-financed.

The financial leverage ratio has fluctuated slightly but has generally been within the range of 2.11 to 2.40 over the analyzed period. This ratio indicates the company's utilization of debt in its capital structure, with a ratio above 1 indicating a higher debt component compared to equity.

Overall, Carpenter Technology Corporation appears to maintain a stable solvency position with balanced levels of debt relative to its assets and capital. However, the company should monitor its debt levels to ensure sustainable long-term financial health.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019
Interest coverage 5.03 4.16 4.32 3.45 2.34 1.55 0.94 0.03 -0.41 -2.62 -4.11 -6.10 -7.85 -11.95 -9.62 -4.00 1.31 11.19 11.01 10.12

Interest coverage is a financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. Carpenter Technology Corporation's interest coverage ratio has varied significantly over the periods indicated in the data table. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

From December 2019 to March 2020, the interest coverage ratio showed a positive trend, reaching a peak at 11.19 in March 2020, which implies a strong ability to cover interest expenses. However, this trend reversed quickly, as seen in the subsequent periods with ratios turning negative. The interest coverage ratio plummeted to a low of -11.95 in March 2021 and remained negative until June 2021, indicating a substantial deterioration in the company's ability to cover its interest payments.

Subsequently, the interest coverage ratio improved gradually but remained below 1, suggesting that the company's earnings may not be sufficient to cover its interest expenses. The ratio turned positive again in December 2021 but remains relatively low compared to the peak levels seen earlier.

Overall, Carpenter Technology Corporation's interest coverage ratio has exhibited significant fluctuations over time, indicating varying levels of financial risk and potential challenges in meeting interest obligations. Investors and creditors should closely monitor the company's interest coverage ratio to assess its financial health and ability to manage its debt effectively.