CSW Industrials Inc (CSWI)

Based on the solvency ratios of CSW Industrials Inc provided in the data, the company demonstrates a strong financial position with consistently low debt levels relative to its assets, capital, and equity.

The Debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, is consistently at 0.00 across all the years indicated. This implies that CSW Industrials Inc relies minimally on debt to fund its operations and investments.

Similarly, the Debt-to-capital ratio, which indicates the percentage of a company's capital that is debt, remains at 0.00 throughout the years. This suggests that the company is not highly leveraged and does not heavily rely on borrowed funds for its capital structure.

The Debt-to-equity ratio, reflecting the extent of a company's reliance on debt financing compared to equity, also stands at 0.00 across the years. This indicates that CSW Industrials Inc maintains a conservative approach to funding its operations and growth, with negligible debt relative to its equity.

Furthermore, the Financial leverage ratio, which provides insights into the company's financial risk and leverage position, shows a declining trend from 2.12 in 2021 to 1.29 in 2025. This decreasing trend indicates that the company has been reducing its reliance on debt over the years, resulting in a stronger financial position and lower financial risk.

In conclusion, based on the solvency ratios analyzed, CSW Industrials Inc appears to have a solid solvency position, characterized by low debt levels, prudent capital structure management, and decreasing financial leverage, which collectively contribute to the company's financial stability and resilience.

---

Coverage ratios

The interest coverage ratio for CSW Industrials Inc has shown a declining trend over the years based on the data provided. As of March 31, 2021, the interest coverage ratio was 22.35, indicating that the company generated 22.35 times the operating income needed to cover its interest expenses. However, this ratio decreased to 17.74 by March 31, 2022, suggesting a slight deterioration in the company's ability to cover its interest obligations.

By March 31, 2023, the interest coverage ratio dropped further to 10.55, signaling a significant decrease in the company's ability to cover its interest expenses with its operating income. This could raise concerns about the company's financial health and its ability to service its debt effectively.

Although there was a slight improvement to a ratio of 12.13 by March 31, 2024, the interest coverage ratio decreased sharply to 0.00 by March 31, 2025. An interest coverage ratio of 0.00 indicates that the company's operating income is insufficient to cover its interest expenses, which is a red flag for investors and creditors.

Overall, the declining trend in CSW Industrials Inc's interest coverage ratio raises concerns about the company's financial stability and ability to meet its debt obligations in the long run. Monitoring this ratio closely will be crucial to assess the company's financial health and risk of default.