Energizer Holdings Inc (ENR)
Solvency ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.74 | 0.77 | 0.67 | 0.58 | 0.64 |
| Debt-to-capital ratio | 0.94 | 0.96 | 0.90 | 0.91 | 0.86 |
| Debt-to-equity ratio | 15.81 | 26.79 | 9.37 | 10.70 | 6.37 |
| Financial leverage ratio | 21.40 | 35.01 | 14.08 | 18.53 | 10.02 |
The solvency ratios of Energizer Holdings Inc have fluctuated over the past five years. The debt-to-assets ratio has ranged from 0.64 to 0.77, indicating that the proportion of the company's assets financed by debt has remained within a relatively stable range. The debt-to-capital ratio has followed a similar pattern, fluctuating between 0.87 and 0.96, suggesting that the company has been able to effectively manage its debt relative to its total capital.
The debt-to-equity ratio, however, has shown significant variability, ranging from 6.43 to 26.94, reflecting fluctuations in the proportion of financing provided by creditors versus shareholders. Notably, the ratio spiked in 2022, indicating a substantial increase in reliance on debt for financing.
Furthermore, the financial leverage ratio, which measures the company's overall leverage, has also displayed fluctuations, ranging from 10.02 to 35.01. This highlights the varying degrees of financial risk and leverage the company has undertaken over the period.
Overall, while the debt-to-assets and debt-to-capital ratios indicate relatively consistent leverage levels, the debt-to-equity and financial leverage ratios reveal significant fluctuations, signaling changes in the company's capital structure and potential shifts in solvency risk.
Coverage ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.04 | -0.93 | 1.95 | 0.63 | 1.26 |
The interest coverage ratio for Energizer Holdings Inc has shown a consistent improvement from 2019 to 2021, reflecting the company's ability to meet its interest obligations from its operating income. In 2019, the interest coverage ratio was 1.34, indicating that the company's operating income was 1.34 times its interest expenses. This ratio increased to 2.58 in 2021, indicating an enhanced capacity to cover interest expenses. Although there was a slight decrease in 2023 to 2.50, the overall trend suggests a favorable ability to meet interest payments from operating income. This indicates a positive financial position for the company, as it signals a decreasing financial risk associated with servicing debt.