Fortune Brands Innovations Inc. (FBIN)

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 0.41 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 0.28 0.31 0.26 0.34
Debt-to-capital ratio 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 0.42 0.45 0.42 0.49
Debt-to-equity ratio 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 0.74 0.83 0.71 0.97
Financial leverage ratio 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 2.59 2.69 2.71 2.80

Fortune Brands Innovations Inc.'s solvency ratios demonstrate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable, ranging from 0.29 to 0.43 over the past five quarters, indicating that around 29% to 43% of the company's assets are financed by debt.

The debt-to-capital ratio, measuring the proportion of debt relative to the total capital employed, has shown a similar trend, fluctuating between 0.43 and 0.56. This indicates that debt constitutes approximately 43% to 56% of Fortune Brands' capital structure.

The debt-to-equity ratio, reflecting the level of financial leverage in the company, has also exhibited consistency, with values ranging from 0.71 to 1.28. This indicates that Fortune Brands' equity is able to cover debt obligations, though there has been a slight increase in leverage in recent quarters.

The financial leverage ratio, which assesses the extent to which the company is using debt to finance its operations, has fluctuated between 2.48 to 3.16. This suggests that Fortune Brands has been employing debt to a varying degree to support its operations and growth.

Overall, based on the solvency ratios analysis, Fortune Brands Innovations Inc. appears to have a reasonable level of solvency and a balanced capital structure, with manageable levels of debt relative to assets, capital, equity, and operations.

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 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 7.11 6.82 7.04 7.50

Fortune Brands Innovations Inc. has exhibited a generally strong interest coverage ratio over the past 20 quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest expenses.

From the data provided, we see that the interest coverage ratio has fluctuated over time, ranging from a low of 5.28 in December 2023 to a high of 12.14 in March 2022. The trend suggests that the company's ability to cover its interest expenses improved significantly from 2020 to early 2022, with the ratio consistently above 7. However, there was a slight decrease in the ratio in the latter part of 2022 and throughout 2023.

Overall, Fortune Brands Innovations Inc. has maintained a healthy interest coverage ratio above 5, which is typically considered a benchmark for financial health. It is important for the company to monitor this ratio to ensure it remains at a level that can support its debt obligations effectively.