ESAB Corp (ESAB)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.28 | 2.22 | 2.32 | 2.33 | 2.38 | 2.50 | 2.56 | 2.71 | 2.78 | 2.93 | 2.96 | 1.53 | 1.41 |
ESAB Corp's solvency ratios indicate a strong financial position with consistently low debt levels in relation to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remain consistently at 0.00 throughout the reporting period, suggesting that the company is not heavily reliant on debt to finance its operations.
Furthermore, the Financial leverage ratio fluctuates slightly over the years but remains within a range of 1.41 to 2.96. This ratio reflects how much a company relies on debt to fund its operations and shows that ESAB Corp's financial leverage is relatively stable and well-managed.
Overall, the solvency ratios of ESAB Corp demonstrate prudent financial management and a conservative approach to debt, indicating a low risk of financial distress and strong financial stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.66 | 5.14 | 5.22 | 5.11 | 4.92 | 3.49 | 3.39 | 3.45 | 4.21 | 15.14 | 34.02 | 167.23 | 195.18 |
ESAB Corp's interest coverage ratio provides insight into the company's ability to meet its interest obligations using its operating income. The interest coverage ratio for ESAB Corp has shown a decreasing trend over the period from December 31, 2021, to December 31, 2024.
As of December 31, 2021, the interest coverage ratio stood at 195.18, indicating the company had a significant margin of operating income to cover its interest expenses. However, the ratio declined to 4.66 by December 31, 2024, which suggests a significant reduction in the company's ability to cover its interest costs from its operating earnings.
The declining trend in the interest coverage ratio may raise concerns about ESAB Corp's financial health and ability to meet its debt obligations. It is important for the company to closely monitor its interest coverage ratio and take necessary steps to improve it, such as increasing operating income or reducing interest expenses, to ensure its financial stability in the long term.