Edgewell Personal Care Co (EPC)

The solvency ratios of Edgewell Personal Care Co provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of assets financed by debt, has remained relatively stable over the past five years, indicating that the company has maintained a prudent balance between debt and assets. The decreasing trend in the debt-to-equity ratio from 2021 to 2023 indicates a more conservative capital structure, with a decreasing reliance on debt financing in relation to equity. However, the debt-to-equity ratio is relatively high, reaching 0.90 in 2023, suggesting a significant level of financial leverage.

The debt-to-capital ratio, which assesses the proportion of capital employed that is financed by debt, has also exhibited a consistent pattern of decrease over the years, indicating a more favorable mix of capital structure. On the other hand, the financial leverage ratio has declined from 2.62 in 2019 to 2.43 in 2023, suggesting a reduction in the company's reliance on debt to finance its assets.

Overall, the solvency ratios suggest that Edgewell Personal Care Co has been managing its leverage and capital structure prudently, albeit with a relatively high level of debt in relation to equity. It will be important for the company to carefully monitor and manage its debt levels to ensure continued financial stability and sustainable growth.

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Coverage ratios

The interest coverage ratio for Edgewell Personal Care Co has shown some fluctuation over the past five years. The ratio indicates the company's ability to meet its interest obligations from its operating income. In 2023, the interest coverage ratio stood at 3.10, reflecting an increase from the prior year. This suggests that the company's operating income was sufficient to cover its interest expenses 3.10 times over. However, it's important to note that this ratio has experienced variability in recent years, with a peak of 4.64 in 2019 and a low of 2.75 in 2022. This pattern may indicate a degree of volatility in the company's ability to cover its interest payments from its operating earnings. It would be prudent to closely monitor this ratio in future periods to assess the company's ability to manage its debt obligations.