ESCO Technologies Inc (ESE)
Solvency ratios
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.08 | 0.10 | 0.09 | 0.05 | 0.08 | 0.08 | 0.07 | 0.08 | 0.11 | 0.11 | 0.11 | 0.08 | 0.02 | 0.00 | 0.02 | 0.03 | 0.09 | 0.09 | 0.09 |
| Debt-to-capital ratio | 0.08 | 0.11 | 0.13 | 0.12 | 0.07 | 0.10 | 0.12 | 0.10 | 0.11 | 0.15 | 0.15 | 0.15 | 0.12 | 0.03 | 0.00 | 0.03 | 0.04 | 0.12 | 0.12 | 0.12 |
| Debt-to-equity ratio | 0.08 | 0.13 | 0.15 | 0.13 | 0.07 | 0.12 | 0.13 | 0.11 | 0.13 | 0.18 | 0.17 | 0.18 | 0.13 | 0.03 | 0.00 | 0.03 | 0.04 | 0.14 | 0.14 | 0.14 |
| Financial leverage ratio | 1.49 | 1.52 | 1.53 | 1.54 | 1.49 | 1.54 | 1.56 | 1.53 | 1.58 | 1.60 | 1.59 | 1.58 | 1.55 | 1.40 | 1.37 | 1.42 | 1.43 | 1.53 | 1.56 | 1.56 |
ESCO Technologies Inc's solvency ratios indicate a relatively stable financial position over the past few years. The debt-to-assets ratio has fluctuated between 0.05 to 0.11, suggesting that the company has maintained a low level of debt compared to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also shown consistency, ranging from 0.07 to 0.15 and 0.07 to 0.18, respectively. These ratios demonstrate the company's ability to finance its operations using a balanced mix of debt and equity.
The financial leverage ratio has exhibited a slightly increasing trend, from 1.37 to 1.60, indicating a gradual increase in financial leverage over the periods analyzed. However, the overall level of leverage remains within a reasonable range, reflecting ESCO Technologies Inc's ability to manage its debt efficiently.
Overall, the solvency ratios suggest that ESCO Technologies Inc has maintained a prudent level of debt relative to its assets and capital structure, contributing to a stable financial position.
Coverage ratios
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.55 | 11.95 | 12.65 | 13.18 | 14.52 | 15.35 | 16.86 | 19.97 | 22.72 | 24.77 | 28.01 | 34.01 | 37.67 | 6.42 | 6.95 | 7.02 | 18.24 | 103.37 | 71.22 | 54.95 |
The interest coverage ratio of ESCO Technologies Inc has shown a consistent upward trend over the past few quarters, indicating the company's ability to comfortably meet its interest obligations with its operating income. The ratio has improved significantly from a low of 6.42 in Q1 2021 to a high of 37.67 in Q4 2021, demonstrating a strong upward momentum in the company's financial health during that period.
The most recent interest coverage ratio of 9.55 in Q3 2024 is slightly lower compared to the previous quarter but remains at a healthy level, suggesting that the company still has a sufficient margin of safety to cover its interest expenses. It is essential to monitor this ratio in future quarters to ensure that ESCO Technologies Inc can continue to service its debts effectively and sustain its financial stability.