CSW Industrials Inc (CSWI)
Solvency ratios
| 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 | Jun 30, 2020 | Mar 31, 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 | 1.29 | 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 | 1.31 | 1.33 |
The solvency ratios of CSW Industrials Inc, including the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, indicate a very strong financial position in terms of the company's ability to meet its long-term obligations.
The Debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, is consistently at 0.00 over the reported periods. This suggests that the company has no debt financing relative to its total assets, indicating a low financial risk and a strong ability to cover its obligations.
Similarly, the Debt-to-capital ratio, which indicates the proportion of a company's capital structure that is financed by debt, remains at 0.00 throughout the period. This implies that the company relies entirely on equity for its capital needs, further highlighting its strong financial stability and low leverage.
The Debt-to-equity ratio, a measure of financial leverage, also stands at 0.00 consistently across the reporting periods. This reaffirms that the company has no debt relative to its equity, underscoring its strong financial health and minimal risk of default.
Lastly, the Financial leverage ratio, which provides insight into the company's debt levels in relation to its equity, shows a decreasing trend from 2.19 in December 2020 to 1.29 in December 2024. This downward trend indicates that the company has been gradually reducing its reliance on debt to finance its operations, thereby improving its financial leverage and reducing its financial risk.
In conclusion, based on the solvency ratios analyzed, CSW Industrials Inc exhibits a robust financial position with very low debt levels and a conservative capital structure, which positions the company well to meet its long-term obligations and pursue growth opportunities.
Coverage ratios
| 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 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 37.45 | 49.64 | 47.52 | 44.28 |
CSW Industrials Inc's interest coverage ratio, which measures the company's ability to meet its interest obligations, has shown fluctuations over the past years. The interest coverage ratio stood at a healthy level of around 44.28 in March 31, 2020, and has generally trended downwards since then. Despite some volatility, the ratio remained above 10 during the period under review, indicating that the company has been able to cover its interest expenses comfortably with its operating income.
However, there was a notable decline in the interest coverage ratio from March 31, 2021, where it dropped to 22.45, and continued to decrease to a low of 9.34 by June 30, 2023. This downward trend suggests a potential strain on the company's ability to cover its interest payments using its earnings during this period.
The ratio started to show signs of improvement from March 31, 2024, with an interest coverage ratio of 12.07, and continued to increase steadily, reaching 27.84 by December 31, 2024. This uptrend indicates that the company's ability to cover its interest expenses improved, reflecting a positive development in its financial health.
Overall, the interest coverage ratio of CSW Industrials Inc has exhibited fluctuations over the years, with some periods of decrease and subsequent recovery. It is important for investors and stakeholders to monitor this ratio closely to ensure the company's ability to meet its interest obligations and sustain its financial stability.