Enerpac Tool Group Corp (EPAC)

Solvency ratios

Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020 May 31, 2020 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 May 31, 2019
Debt-to-assets ratio 0.31 0.31 0.28 0.29 0.27 0.26 0.26 0.26 0.21 0.22 0.21 0.23 0.26 0.30 0.31 0.34 0.33 0.32 0.40 0.34
Debt-to-capital ratio 0.42 0.43 0.39 0.41 0.38 0.37 0.39 0.36 0.30 0.30 0.30 0.32 0.36 0.41 0.42 0.46 0.45 0.45 0.60 0.44
Debt-to-equity ratio 0.71 0.75 0.64 0.69 0.61 0.60 0.63 0.56 0.42 0.43 0.42 0.47 0.55 0.69 0.71 0.85 0.81 0.81 1.50 0.77
Financial leverage ratio 2.28 2.38 2.33 2.36 2.27 2.32 2.38 2.18 1.99 1.98 1.99 2.02 2.12 2.28 2.29 2.53 2.48 2.57 3.73 2.29

Enerpac Tool Group Corp's solvency ratios paint a picture of the company's ability to meet its financial obligations and manage its debt levels effectively.

The debt-to-assets ratio has been relatively stable around 0.30 over the period, indicating that around 30% of the company's assets are financed by debt. This suggests a moderate reliance on debt to fund its operations and investments.

The debt-to-capital ratio has also shown consistency, hovering around 0.40, suggesting that around 40% of the company's capital structure is comprised of debt. This indicates a balanced mix of debt and equity in financing the company's operations.

The debt-to-equity ratio has exhibited some fluctuation but has generally been above 0.50, indicating that the company relies more on debt financing compared to equity. The higher ratio implies higher financial risk, as the company has a larger proportion of debt in its capital structure.

The financial leverage ratio has shown varying levels but has generally been above 2.00, indicating that the company has been using leverage to support its operations and growth. A higher financial leverage ratio signifies higher financial risk due to the increased dependence on debt for financing.

Overall, the stability in the debt-to-assets and debt-to-capital ratios suggests a consistent approach to maintaining a balanced capital structure. However, the higher debt-to-equity and financial leverage ratios indicate that the company has been carrying significant debt levels, which may pose risks in case of economic downturns or interest rate fluctuations.

Coverage ratios

Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020 May 31, 2020 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 May 31, 2019
Interest coverage 8.35 7.56 6.77 5.96 5.36 5.86 6.99 8.80 12.03 10.75 9.71 5.29 1.47 1.33 1.26 1.17 2.64 2.54 1.68 1.16

The interest coverage ratio for Enerpac Tool Group Corp has shown fluctuations over the periods analyzed. The interest coverage ratio measures the company's ability to meet its interest obligations on its outstanding debt. A higher ratio is generally favorable as it indicates that the company is generating enough operating income to cover its interest expenses.

Looking at the data, we can observe that the interest coverage ratio for Enerpac Tool Group Corp has varied widely, ranging from a low of 1.16 in May 2019 to a high of 12.03 in February 2022. The ratio has displayed some volatility, with periods of both improvement and deterioration.

The trend in the interest coverage ratio fluctuates over time, indicating changes in the company's ability to cover its interest payments. It is important for investors and creditors to closely monitor these fluctuations to assess the company's financial health and risk of default.

Overall, the interest coverage ratio for Enerpac Tool Group Corp suggests that the company has generally been able to comfortably meet its interest obligations, although there have been periods of tighter coverage which may warrant further scrutiny.