Crane NXT Co (CXT)

The solvency ratios of Crane NXT Co provide insight into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to fund its operations.

The debt-to-assets ratio has shown a declining trend from 2019 to 2023, indicating that the company has been reducing its reliance on debt relative to its total assets. This implies a stronger ability to cover its liabilities with its assets over the years.

The debt-to-capital ratio has fluctuated over the same period, with a noticeable decrease in 2021 followed by an increase in 2022 and 2023. This ratio suggests the proportion of the company's capital that is financed through debt. The company has shown some inconsistency in its capital structure in recent years.

The debt-to-equity ratio, which measures the extent to which a company is financed by debt relative to equity, has also varied significantly. The sharp decrease in 2021 and subsequent increase in 2022 and 2023 indicate changes in the company's capital structure and financing decisions.

The financial leverage ratio, which shows the extent to which the company's operations are funded by debt, has fluctuated but generally decreased from 2019 to 2023. Lower financial leverage ratios suggest a lower reliance on debt to finance operations, which may indicate improved financial stability.

Overall, Crane NXT Co's solvency ratios reflect a mix of trends, with improvements in some ratios indicating better solvency and financial stability over the years, while fluctuations in others suggest varying levels of reliance on debt for financing.

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Coverage ratios

Crane NXT Co's interest coverage ratio has varied over the past five years. In 2023, the interest coverage ratio was 5.67, showing a decrease from the previous year's ratio of 11.79. This suggests that the company's ability to cover its interest expenses with its operating income has weakened. Looking further back, in 2021 and 2020, the interest coverage ratios were relatively stable at 11.72 and 5.06, respectively, indicating a mix of strong and weaker performance in those years. The lowest ratio in the provided data was in 2019 at 4.52, which might have raised concerns about the company's ability to meet its interest obligations at that time. Overall, a fluctuating trend in interest coverage ratios is evident, highlighting the importance of monitoring the company's financial health and operational efficiency.