Flowserve Corporation (FLS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.74 | 2.64 | 2.63 | 2.63 | 3.07 |
Flowserve Corporation has consistently maintained a strong solvency position as indicated by its debt-related ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 from 2020 to 2024. This signifies that the company has no debt relative to its total assets, capital, or equity during this period.
Additionally, the financial leverage ratio has decreased from 3.07 in 2020 to 2.74 in 2024. This indicates that the company has been reducing its reliance on debt financing over the years, which is a positive trend for its long-term solvency and financial stability.
Overall, Flowserve Corporation's solvency ratios suggest a conservative financial structure with minimal debt levels and a decreasing reliance on debt financing, which bodes well for its ability to meet its financial obligations and weather any potential economic downturns.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.57 | 4.34 | 4.34 | 4.95 | 4.36 |
Flowserve Corporation's interest coverage ratio has shown relatively stable performance over the past five years. The interest coverage ratio, calculated as EBIT divided by interest expense, indicates the company's ability to meet its interest obligations from its operating earnings.
In December 2020, the interest coverage ratio was 4.36, indicating that Flowserve generated operating income 4.36 times greater than its interest expenses. Over the following years, the ratio improved to 4.95 in December 2021 and reached a high of 6.57 in December 2024. This trend suggests that Flowserve's earnings were increasingly able to cover its interest payments, reflecting a positive financial position.
Although there was a slight decrease in the ratio in 2022 and 2023 to 4.34, the ratio remained above 4, which is generally considered a healthy level of coverage. Overall, Flowserve Corporation's interest coverage demonstrates a consistent ability to fulfill its interest obligations from operating profits, indicating financial stability and the ability to manage debt effectively.