Flowserve Corporation (FLS)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.74 | 2.57 | 2.62 | 2.64 | 2.64 | 2.65 | 2.61 | 2.64 | 2.63 | 2.72 | 2.66 | 2.68 | 2.63 | 3.18 | 2.77 | 2.81 | 3.07 | 3.09 | 2.86 | 2.87 |
Flowserve Corporation's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across multiple quarters, reflecting that the company has a minimal amount of debt in relation to its total assets, capital, and equity.
Additionally, the Financial leverage ratio has been relatively stable, ranging between 2.57 and 3.18 over the quarters analyzed. This ratio measures the proportion of a company's assets that are financed by debt compared to equity. Flowserve Corporation's financial leverage ratio indicates that the company has been judicious in its use of debt to finance its operations and investments, maintaining a balanced capital structure.
Overall, based on the solvency ratios, Flowserve Corporation appears to have a conservative financial strategy, with a low risk of financial distress and a solid foundation to support its long-term sustainability and growth.
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 | 6.95 | 7.27 | 6.59 | 5.94 | 4.85 | 4.45 | 4.81 | 4.85 | 4.34 | 4.49 | 4.35 | 4.20 | 4.95 | 5.11 | 5.70 | 6.45 | 6.37 | 6.55 | 6.90 | 6.46 |
Flowserve Corporation's interest coverage ratio has been relatively stable between March 31, 2020, and June 30, 2021, ranging from 6.46 to 6.90. However, from June 30, 2021, to December 31, 2024, there is a noticeable decline in the interest coverage ratio, dropping to as low as 4.20 as of March 31, 2022. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time.
The decreasing trend in the interest coverage ratio may raise concerns about Flowserve Corporation's financial health and its ability to meet its debt obligations. Investors and creditors may view a declining interest coverage ratio as a sign of increased financial risk, as it suggests that the company may be struggling to generate enough earnings to cover its interest expenses.
It is important for Flowserve Corporation to closely monitor its interest coverage ratio and take steps to improve it, such as increasing profitability, reducing debt levels, or refinancing debt at lower interest rates. Strengthening the interest coverage ratio can enhance the company's financial stability and reputation among stakeholders.