ESCO Technologies Inc (ESE)

Solvency ratios

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	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	0.18	0.15	0.15
Debt-to-capital ratio	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	0.24	0.20	0.20
Debt-to-equity ratio	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	0.32	0.24	0.25
Financial leverage ratio	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	1.78	1.63	1.63

Esco Technologies, Inc.'s solvency ratios indicate the firm's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the periods, ranging between 0.06 and 0.12, with the latest quarter at 0.10. This ratio suggests that Esco Technologies has maintained a conservative level of debt in relation to its total assets.

Similarly, the debt-to-capital ratio has shown consistency, fluctuating between 0.08 and 0.16. The most recent quarter's ratio stood at 0.13, indicating that a moderate portion of Esco Technologies' capital is financed through debt.

The debt-to-equity ratio has also remained within a reasonable range, from 0.09 to 0.20. The latest quarter's ratio of 0.15 suggests that Esco Technologies relies more on equity financing compared to debt to support its operations.

Lastly, the financial leverage ratio, which reflects the company's level of financial risk, has been quite stable, ranging from 1.49 to 1.60. The most recent quarter's ratio of 1.54 indicates that Esco Technologies' financial leverage has been relatively consistent over the periods analyzed.

Overall, Esco Technologies, Inc. appears to maintain a moderate level of leverage and a balanced mix of debt and equity in its capital structure, which may indicate a prudent approach to managing solvency and financial risk.

Coverage ratios

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	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	36.92	37.71	36.57

Esco Technologies, Inc.'s interest coverage has demonstrated a consistent and favorable trend over the past few quarters. The interest coverage ratio, which represents the company's ability to meet its interest obligations through its earnings, has shown a gradual increase from 13.39 in Q1 2024 to 26.90 in Q2 2022. This indicates a strong ability to cover interest expenses with operating profits. The improving trend suggests that the company is effectively managing its debt and generating sufficient earnings to comfortably meet its interest payments. A higher interest coverage ratio is typically viewed positively by investors and creditors as it signifies a lower risk of default on debt obligations. Overall, Esco Technologies, Inc.'s interest coverage appears to be solid and improving, reflecting a healthy financial position.