Carlisle Companies Incorporated (CSL)

The solvency ratios of Carlisle Companies Inc. indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.

The debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.29 to 0.40. This ratio shows that, on average, around 35% to 40% of the company's total assets are financed by debt, with the remaining funded by equity. A lower ratio indicates a lower reliance on debt for funding operations.

The debt-to-capital ratio also reflects a consistent trend, fluctuating between 0.38 and 0.53. This ratio shows the proportion of the company's capital structure that is funded by debt. The ratios suggest that, on average, around 45% to 53% of the company's capital is derived from debt sources.

The debt-to-equity ratio has displayed more variability, with values ranging from 0.60 to 1.11 over the past five years. This ratio indicates the extent to which the company is leveraged through debt in relation to shareholders' equity. A lower ratio suggests less reliance on debt financing and a stronger equity position.

The financial leverage ratio has also demonstrated a consistent trend, hovering between 2.08 and 2.76 over the five-year period. This ratio measures the proportion of a company's assets that are financed by debt, indicating the company's overall financial risk. A higher ratio implies higher financial leverage and greater risk.

Overall, Carlisle Companies Inc. appears to have maintained a relatively stable level of debt usage and financial leverage over the past five years. However, the company should continue to monitor these solvency ratios to ensure they remain at appropriate levels to support long-term financial stability and growth.

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Coverage ratios

The interest coverage ratio of Carlisle Companies Inc. has exhibited fluctuations over the past five years. The ratio was highest in 2023 at 17.66, indicating the company's ability to cover its interest payments almost 18 times over with its operating income during that year. This signifies a strong ability to meet its interest obligations comfortably.

In 2022, the interest coverage ratio was 16.44, also demonstrating a robust ability to cover interest expenses. The ratio decreased in 2021 to 7.16, possibly indicating a slight decrease in the company's ability to cover interest payments from its operating income. Similarly, in 2020, the ratio was 6.77, suggesting a further decrease in the coverage of interest payments.

However, it is noteworthy that the interest coverage ratio increased to 11.06 in 2019, indicating an improvement in the company's ability to cover interest expenses compared to the prior year. Overall, the trend suggests a fluctuating but relatively strong ability of Carlisle Companies Inc. to cover its interest obligations with its operating income over the five-year period.