Enerpac Tool Group Corp (EPAC)

The solvency ratios of Enerpac Tool Group Corp over the past five years show a mixed trend in terms of leverage and debt position. The debt-to-assets ratio has fluctuated within a relatively narrow range, with a low of 0.21 in 2021 and a high of 0.31 in 2020. This indicates that the company's level of debt relative to its total assets has been fairly stable over the period.

The debt-to-capital ratio and debt-to-equity ratio, on the other hand, have shown more variation. Both ratios decreased from 2023 to 2024, which suggests that the company has been reducing its reliance on debt to finance its operations. The debt-to-equity ratio, in particular, saw a significant improvement from 0.71 in 2020 to 0.48 in 2024, indicating a healthier capital structure with less debt relative to equity.

The financial leverage ratio, which gives an indication of the company's total assets relative to equity, has also shown some variability over the years. It decreased from 2.33 in 2023 to 1.98 in 2024, indicating a reduction in financial leverage and potentially a stronger equity position.

Overall, the solvency ratios of Enerpac Tool Group Corp suggest that the company has been managing its debt levels effectively and improving its overall financial health by reducing its debt burden and strengthening its equity position.

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Coverage ratios

The interest coverage ratio for Enerpac Tool Group Corp has shown fluctuations over the past five years. The ratio was highest in August 2021 at 9.71, indicating that the company generated sufficient operating income to cover its interest expenses almost ten times over. This suggests a strong ability to meet interest payments comfortably.

In the following year, the interest coverage ratio decreased to 6.99 but remained at a respectable level. However, in August 2023, there was a further decrease to 6.77, indicating a slight reduction in the company's ability to cover interest expenses. Nonetheless, the ratio remained above 1, which is seen as a minimum threshold for creditors and investors.

The most significant improvement in interest coverage was observed in August 2024, with a ratio of 8.99. This increase indicates that the company's operating profits improved significantly, providing a healthier buffer to cover interest obligations. In contrast, August 2020 showed the lowest interest coverage at 1.26, indicating a potential strain on the company's ability to cover interest payments with its operating income during that period.

Overall, the trend in Enerpac Tool Group Corp's interest coverage ratio has been positive, with fluctuations reflecting changes in the company's operating performance and financial health. An interest coverage ratio above 1 signifies that the company is generating sufficient income to cover its interest expenses, with higher ratios indicating a stronger ability to meet these obligations.