Dana Inc (DAN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.32 | 0.31 | 0.31 | 0.32 | 0.33 |
| Debt-to-capital ratio | 0.62 | 0.60 | 0.55 | 0.57 | 0.56 |
| Debt-to-equity ratio | 1.64 | 1.49 | 1.22 | 1.35 | 1.27 |
| Financial leverage ratio | 5.06 | 4.80 | 3.97 | 4.20 | 3.85 |
Dana Inc's solvency ratios provide insights into the company's ability to meet its financial obligations and manage its debt levels. The debt-to-assets ratio has remained relatively stable around 0.32-0.33 over the past five years, indicating that approximately one-third of the company's assets are financed through debt.
The debt-to-capital ratio has shown a slight increasing trend from 0.56 in 2019 to 0.63 in 2023, suggesting that a higher proportion of the company's capital structure is being funded by debt. This could potentially increase the company's financial risk if not managed effectively.
Similarly, the debt-to-equity ratio has also been on the rise, from 1.26 in 2019 to 1.69 in 2023, indicating that Dana Inc is increasingly relying on debt to finance its operations compared to equity. This signifies a higher level of financial leverage and may raise concerns about the company's ability to repay its debts.
The financial leverage ratio, which measures the proportion of assets that are financed through debt, has also shown an upward trend over the past five years, increasing from 3.85 in 2019 to 5.06 in 2023. This indicates that Dana Inc is using more debt to leverage its assets, which can amplify returns but also increase financial risks.
Overall, Dana Inc's solvency ratios suggest a growing reliance on debt financing, which could potentially impact the company's financial stability and ability to manage its debt obligations in the long run. Monitoring these ratios closely is essential for assessing the company's solvency and financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.03 | 1.33 | 3.05 | 1.20 | 2.59 |
Dana Inc's interest coverage ratio has fluctuated over the past five years. In 2023, the interest coverage ratio improved to 2.75 from 2.21 in 2022, indicating the company's ability to meet its interest obligations has strengthened. However, when compared to 2021 and 2019, where the ratio was higher at 3.20 and 5.72 respectively, the current ratio still falls below those levels. The ratio was at its lowest in 2020 at 1.60, indicating a significant improvement since then. Overall, Dana Inc's interest coverage shows some variability, but the recent increase suggests an improvement in the company's ability to cover its interest expenses.