CSW Industrials, Inc. (CSW)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.38 | 1.29 | 1.29 | 1.32 | 1.62 | 1.69 | 1.69 | 1.72 | 1.84 | 1.98 | 2.10 | 2.11 | 2.18 | 2.12 | 2.07 | 2.01 | 2.10 | 2.12 | 2.19 | 1.30 |
The solvency ratios for CSW Industrials, Inc. demonstrate a comprehensive picture of the company's financial leverage and reliance on debt financing over the specified periods. Notably, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio consistently remain at zero throughout the entire timeline from September 2020 through June 2025. This indicates that the company has maintained an extremely conservative financial structure, with no recorded long-term or short-term debt obligations during these periods. Consequently, the absence of debt implies that CSW Industrials relies predominantly on equity financing and internal funds for its operations and growth initiatives.
Further examination of the financial leverage ratio indicates that the company’s leverage was above 1.3 at the beginning of the period (September 2020), with a peak around 2.19 by December 2020. After this peak, the leverage ratio shows a downward trend, gradually decreasing to approximately 1.29 by December 2024, with slight fluctuations thereafter. The reduction in the leverage ratio over time suggests a diminishing reliance on debt or increased equity, aligning with the other ratios that indicate negligible or no debt on the balance sheet.
The consistent zero values for debt-related ratios, coupled with the declining and relatively low financial leverage ratios, reinforce the interpretation that CSW Industrials operates with minimal or no debt financing. This financial approach significantly reduces financial risk and insolvency concerns related to debt servicing obligations, positioning the company as highly solvent in this regard. The ratios collectively underscore a conservative capital structure, emphasizing stability and potentially a strategic choice to avoid leveraging risks associated with debt.
In summary, the solvency profile of CSW Industrials, as reflected in the ratios provided, reveals a debt-free or nearly debt-free financial position across the analyzed periods, characterized by negligible leverage and an absence of debt-to-assets, debt-to-capital, and debt-to-equity ratios. The decreasing trend in leverage further underscores a sustained conservative approach to capital management, suggesting a strong ability to meet its obligations without reliance on debt financing.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 45.30 | 32.97 | 27.84 | 18.41 | 14.55 | 12.07 | 10.53 | 9.77 | 9.34 | 10.55 | 12.28 | 15.90 | 18.93 | 17.45 | 14.36 | 14.73 | 18.28 | 22.45 | 46.02 | 63.34 |
The interest coverage ratios for CSW Industrials, Inc. from September 2020 through June 2025 reveal a trend of significant initial strength followed by a pronounced decline and subsequent partial recovery. Specifically, as of September 30, 2020, the ratio was exceptionally high at 63.34, indicating that the company's earnings before interest and taxes (EBIT) were more than sufficient to cover interest expenses multiple times over, suggesting a highly conservative leverage position at that point.
Over the subsequent quarters, a sharp decline in the interest coverage ratio is observed, decreasing to 46.02 by December 2020, then further falling to 22.45 by March 2021, and continuing downward to a low of 9.34 on June 30, 2023. This downward trend signals increasing interest obligations relative to EBIT, which might reflect either increased debt levels, declining earnings, or a combination of both.
Post-June 2023, the ratio begins to exhibit a consistent upward trajectory, reaching 9.77 on September 30, 2023, and continuing to improve through December 2023 (10.53), March 2024 (12.07), and June 2024 (14.55), culminating at 45.30 by June 2025. This renewed upward trend indicates a substantial improvement in EBIT relative to interest expenses, suggesting enhanced earnings capacity or reduced debt service obligations.
In essence, CSW Industrials experienced a period of substantial financial leverage around 2020–2023, characterized by a declining interest coverage ratio, signaling increased risk associated with their debt levels. The subsequent recovery commencing in late 2023 suggests a positive shift in earnings generation relative to interest obligations, which may imply improved operational performance or deleveraging efforts. Overall, the current and projected ratios indicate a strengthening of the company's ability to comfortably meet its interest expenses in the near future.