Dana Inc (DAN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.62 | 5.06 | 4.80 | 3.97 | 4.20 |
Dana Inc's solvency ratios indicate a very strong financial position with a consistent trend of low debt levels relative to assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 for the past five years, showing that the company has no significant debt obligations compared to its total assets, capital, or equity. This indicates a low-risk profile in terms of long-term debt obligations.
Despite the low debt levels, the Financial leverage ratio has shown an increasing trend from 4.20 in 2020 to 5.62 in 2024. This ratio measures the proportion of total assets that are financed by debt. Even though the ratio has been increasing, it is important to note that the overall level of debt remains very low, indicating that the company's capital structure is predominantly equity-funded.
Overall, Dana Inc's solvency ratios demonstrate a conservative financial strategy with little reliance on debt financing, which is a positive sign for the company's long-term stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.50 | 2.16 | 0.76 | 2.69 | 1.28 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations with its earnings. A higher interest coverage ratio suggests that the company is more capable of servicing its debt.
Analyzing Dana Inc's interest coverage over the span of five years, we observe fluctuations in the ratio. As of December 31, 2020, the interest coverage ratio stood at 1.28, indicating that the company's earnings were just sufficient to cover its interest expenses.
Subsequently, by December 31, 2021, Dana Inc's interest coverage ratio improved significantly to 2.69, signaling a healthier financial position with a greater ability to meet its interest obligations.
However, there was a notable decline in the interest coverage ratio by December 31, 2022, dropping to 0.76. This decrease suggests that Dana Inc may have faced challenges in generating enough earnings to cover its interest expenses during that period.
The company's interest coverage ratio improved to 2.16 by December 31, 2023, reflecting a recovery in its ability to cover interest payments.
By the end of December 31, 2024, Dana Inc's interest coverage ratio was at 1.50, showing a moderate improvement compared to the previous year but still below the peak reached in 2021.
Overall, fluctuations in Dana Inc's interest coverage ratio indicate varying levels of financial stability and ability to manage debt obligations over the past five years, highlighting the importance of monitoring this ratio for sustainable financial health.