CSW Industrials Inc (CSWI)
Solvency ratios
| 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 | Jun 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 | 1.29 | 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 | 1.31 |
CSW Industrials Inc has consistently maintained a strong solvency position as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 throughout the reporting periods from June 30, 2020, to March 31, 2025. This indicates that the company has minimal reliance on debt to finance its operations and that its assets are largely financed through equity.
The financial leverage ratio, however, shows some variability over the periods. It experienced an increase from 1.31 on June 30, 2020, to a peak of 2.19 on December 31, 2020. Subsequently, the ratio fluctuated but generally trended downwards, reaching 1.29 by March 31, 2025. Despite these fluctuations, the overall trend indicates an improvement in the company's ability to meet its financial obligations with a lower level of leverage.
Overall, based on the solvency ratios, CSW Industrials Inc appears well-positioned to weather financial challenges and meet its obligations, with a prudent approach to managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 35.33 | 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 |
The interest coverage ratio of CSW Industrials Inc has experienced fluctuations over the period of analysis. The ratio, which measures the company's ability to meet its interest obligations with its operating income, has shown a downward trend from June 2020 to March 2025.
Initially, in June 2020 and September 2020, the interest coverage ratio was relatively high at 47.52 and 49.64, respectively, indicating a strong ability to cover interest expenses. However, there was a notable decline in the ratio by December 2020 to 37.45, suggesting a decrease in the company's ability to cover interest costs.
The trend continued to decline in the following quarters, with the interest coverage ratio dropping to its lowest point of 9.34 in June 2023. This sharp decrease may raise concerns about the company's financial health and ability to service its debt obligations comfortably.
Despite the significant drop, there was a slight recovery in the interest coverage ratio in the subsequent quarters, reaching 35.33 by March 2025. While this improvement is positive, it is important for stakeholders to monitor the ratio closely to assess the company's ongoing ability to meet interest payments.
Overall, the analysis of CSW Industrials Inc's interest coverage ratio highlights the importance of consistent monitoring of financial metrics to gauge the company's financial stability and debt repayment capacity.