Fortune Brands Innovations Inc. (FBIN)

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 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Debt-to-assets ratio 0.33 0.35 0.36 0.45 0.41 0.43 0.39 0.35 0.34 0.33 0.40 0.41 0.29 0.33 0.34 0.36 0.35 0.32 0.35 0.32
Debt-to-capital ratio 0.47 0.49 0.51 0.57 0.54 0.56 0.55 0.50 0.50 0.48 0.53 0.54 0.43 0.46 0.46 0.48 0.48 0.44 0.48 0.46
Debt-to-equity ratio 0.90 0.95 1.03 1.33 1.16 1.28 1.23 1.00 0.99 0.92 1.14 1.16 0.75 0.86 0.86 0.92 0.93 0.79 0.91 0.86
Financial leverage ratio 2.71 2.75 2.86 2.98 2.86 2.98 3.16 2.87 2.93 2.78 2.82 2.83 2.59 2.58 2.53 2.56 2.65 2.48 2.57 2.67

Fortune Brands Innovations Inc.'s solvency ratios indicate its ability to meet long-term obligations and manage debt effectively.

The Debt-to-assets ratio has shown some fluctuations over the years but generally, the company maintains a healthy level of assets relative to its debt, with the ratio ranging from 0.29 to 0.45. This signifies that a significant portion of the company's assets is financed by debt.

The Debt-to-capital ratio reflects the proportion of the company's capital structure that is in the form of debt. It has also varied over time, ranging from 0.43 to 0.57. The trend indicates that the company relies moderately on debt to finance its operations and investments.

The Debt-to-equity ratio measures the level of financial leverage and risk from creditors compared to shareholders' equity. With values ranging from 0.75 to 1.33, this ratio shows an increasing trend, indicating higher reliance on debt financing relative to equity.

Lastly, the Financial leverage ratio indicates the proportion of the company's assets that are financed by debt. The values fluctuate between 2.48 and 3.16, suggesting that the company has been increasing its debt levels to support its operations and growth.

Overall, while the company's solvency ratios may reflect a moderate level of leverage and reliance on debt, careful monitoring is necessary to ensure that Fortune Brands Innovations Inc. maintains a balanced capital structure and can meet its long-term financial obligations effectively.

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 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Interest coverage 6.12 5.72 5.51 5.33 5.28 5.45 5.43 5.85 6.50 7.40 9.39 11.33 12.14 12.12 11.60 10.01 8.92 8.49 7.38 7.50

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Analyzing Fortune Brands Innovations Inc.'s interest coverage from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The interest coverage ratio started at 7.50 in March 2020 and showed a relatively stable trend, gradually increasing to its peak at 12.14 in December 2021.

From March 31, 2022, the interest coverage ratio began to decline, signaling a potential decrease in the company's ability to cover its interest expenses with its operating income. The ratio dropped to 5.28 by December 31, 2023, before slightly recovering to 6.12 by December 31, 2024.

Overall, the company's interest coverage ratio exhibited a fluctuating pattern over the period in review, with periods of both improvement and deterioration. Investors and creditors should closely monitor this ratio to assess the company's financial health and ability to manage its debt obligations.