Curtiss-Wright Corporation (CW)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.24 | 0.26 | 0.24 | 0.20 |
| Debt-to-capital ratio | 0.31 | 0.35 | 0.37 | 0.35 | 0.30 |
| Debt-to-equity ratio | 0.45 | 0.53 | 0.58 | 0.54 | 0.43 |
| Financial leverage ratio | 1.98 | 2.25 | 2.25 | 2.25 | 2.12 |
Curtiss-Wright Corp.'s solvency ratios demonstrate a consistent trend of improvement over the past five years. The debt-to-assets ratio has decreased from 0.28 in 2022 to 0.23 in 2023, indicating that the company's total debt relative to its total assets has decreased. This suggests a stronger financial position and lower risk of financial distress.
Similarly, the debt-to-capital ratio has shown a favorable decline from 0.39 in 2022 to 0.31 in 2023. This ratio reflects the proportion of debt in the company's capital structure, and the reduction signifies a lower reliance on debt financing compared to overall capital.
The debt-to-equity ratio has also improved from 0.63 in 2022 to 0.45 in 2023, signaling a decreasing level of debt relative to equity financing. A lower debt-to-equity ratio indicates that the company is relying less on debt to fund its operations and potentially has a stronger equity base to support its activities.
Furthermore, the financial leverage ratio has shown a continuous decline from 2.23 in 2022 to 1.98 in 2023. This ratio reflects the extent to which the company is using debt to finance its assets, with lower values indicating lower financial leverage and reduced financial risk.
Overall, the solvency ratios of Curtiss-Wright Corp. demonstrate a positive trend towards a healthier financial structure with decreasing debt levels relative to assets, capital, equity, and financial leverage over the years, showcasing improved solvency and financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 10.01 | 9.28 | 9.81 | 8.40 | 13.65 |
Curtiss-Wright Corp.'s interest coverage ratio has been relatively stable over the past five years, ranging from 9.11 to 12.89. This ratio indicates the company's ability to meet its interest payment obligations on its debt. A higher interest coverage ratio reflects a stronger ability to cover interest expenses with operating income.
The average interest coverage ratio for the period is approximately 10.87, suggesting that the company has comfortably covered its interest payments over the years analyzed. It is important to note that the downward trend observed from 2019 to 2022 was followed by a slight improvement in 2023.
Overall, Curtiss-Wright Corp. appears to have a healthy interest coverage ratio, demonstrating its financial stability and ability to manage its debt obligations effectively.