Dana Inc (DAN)

Solvency ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.32	0.32	0.32	0.29	0.31	0.30	0.29	0.29	0.31	0.31	0.31	0.31	0.32	0.38	0.41	0.32	0.33	0.34	0.34	0.34
Debt-to-capital ratio	0.62	0.62	0.61	0.59	0.60	0.58	0.56	0.55	0.55	0.56	0.56	0.57	0.57	0.62	0.63	0.57	0.56	0.58	0.60	0.64
Debt-to-equity ratio	1.64	1.60	1.58	1.44	1.49	1.40	1.25	1.21	1.22	1.26	1.25	1.32	1.35	1.66	1.73	1.31	1.27	1.36	1.47	1.74
Financial leverage ratio	5.06	4.99	4.96	4.92	4.80	4.72	4.28	4.17	3.97	4.08	4.10	4.24	4.20	4.42	4.20	4.06	3.85	4.04	4.28	5.08

Dana Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable at around 0.33, indicating that a third of the company's assets are financed through debt. This suggests a healthy balance between debt and assets.

The debt-to-capital ratio and debt-to-equity ratio have also shown consistency over the quarters, with the former hovering around 0.62-0.63 and the latter around 1.64-1.69. These ratios imply that Dana Inc relies on debt and equity in a proportionate manner to finance its operations and investments.

Furthermore, the financial leverage ratio has been gradually increasing, indicating an increase in the company's reliance on debt to finance its assets. This may raise concerns about the company's overall financial risk and leverage, particularly if the trend continues.

Overall, Dana Inc's solvency ratios suggest a balanced capital structure with a reasonable mix of debt and equity. However, the increasing financial leverage ratio warrants further monitoring to ensure the company's long-term financial stability and sustainability.

Coverage ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	2.03	2.59	1.90	1.50	1.33	1.35	2.35	2.65	3.05	3.12	2.97	1.55	1.20	1.33	1.80	1.95	2.59	2.85	3.06	5.72

Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses incurred during a specific period.

Based on the data provided for Dana Inc, we observe that the interest coverage ratio has been fluctuating over the past eight quarters. In Q4 2023, the interest coverage ratio stood at 2.75, showing a slight decrease compared to the previous quarter's ratio of 2.97. Despite this slight decline, the company's ability to cover its interest expenses remains relatively strong.

Looking at the trend over the past two years, there has been an overall improvement in Dana Inc's interest coverage ratio. The ratio has generally been above 2.0, indicating that the company's earnings are at least twice its interest expenses, reflecting a healthy financial position.

It is important to note that a higher interest coverage ratio is typically considered more favorable as it suggests that the company is more capable of meeting its interest payments. Conversely, a lower ratio may signal potential financial distress or an increased risk of default.

In conclusion, Dana Inc's interest coverage ratio has shown resilience over the past eight quarters, staying above 2.0 for most periods. This indicates the company's ability to comfortably meet its interest obligations, although monitoring future trends will be crucial to assess any changes in its financial health.