Curtiss-Wright Corporation (CW)

Solvency ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Debt-to-assets ratio	0.19	0.23	0.24	0.26	0.24
Debt-to-capital ratio	0.28	0.31	0.35	0.37	0.35
Debt-to-equity ratio	0.39	0.45	0.53	0.58	0.54
Financial leverage ratio	2.04	1.98	2.25	2.25	2.25

Curtiss-Wright Corporation's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight increase from 0.24 in 2020 to 0.26 in 2021 but has since trended downward to 0.19 in 2024. This suggests that the company has been able to reduce its reliance on debt in relation to its total assets over the years.

Similarly, the debt-to-capital ratio increased from 0.35 in 2020 to 0.37 in 2021 and has decreased steadily to 0.28 in 2024. This indicates that the proportion of debt to total capital has declined, reflecting a healthier financial position.

The debt-to-equity ratio also exhibited a declining trend, decreasing from 0.54 in 2020 to 0.39 in 2024. This signifies that the company's reliance on equity financing relative to debt has improved, indicating a stronger financial structure.

Moreover, the financial leverage ratio remained relatively stable around 2.25 from 2020 to 2022 but decreased to 1.98 in 2023 before increasing slightly to 2.04 in 2024. This ratio indicates the extent to which the company's operations are funded by debt, with a lower ratio suggesting less reliance on debt to finance its operations.

Overall, the decreasing trend in debt ratios and the stable financial leverage ratio suggest that Curtiss-Wright Corporation has been effectively managing its debt levels and financial leverage, which is a positive indicator of its solvency and financial health over the analyzed period.

Coverage ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Interest coverage	11.78	10.01	9.28	9.81	8.40

Curtiss-Wright Corporation's interest coverage has shown a positive trend over the past five years, increasing from 8.40 in December 2020 to 11.78 in December 2024. This indicates the company's improving ability to meet its interest obligations from its earnings before interest and taxes (EBIT). With a consistently high interest coverage ratio above 1, surging towards 12, Curtiss-Wright seems to have a solid financial position and a comfortable cushion to handle its interest expenses. This upward trajectory suggests the company is effectively managing its debt and has sufficient earnings to cover its interest payments, reflecting financial stability and potential for growth.