Greenbrier Companies Inc (GBX)

The solvency ratios of Greenbrier Cos., Inc. provide insight into the company's long-term financial health and its ability to meet its long-term obligations.

The debt-to-assets ratio has fluctuated over the years, ranging from 0.28 to 0.41, and currently stands at 0.40 as of August 31, 2023. This indicates that 40% of the company's assets are financed by debt. While there has been some variability, the ratio suggests that Greenbrier has maintained a reasonable level of leverage relative to its assets.

The debt-to-capital ratio has followed a similar trend, with a current value of 0.56 as of August 31, 2023. This ratio signifies that 56% of the company's capital is in the form of debt. This has been relatively stable over the past few years, indicating that Greenbrier has been able to maintain a consistent balance between debt and equity in its capital structure.

The debt-to-equity ratio has shown an upward trend, increasing from 0.67 in 2019 to 1.28 in 2023. This indicates that the company's reliance on debt financing in relation to equity has been increasing. A higher debt-to-equity ratio suggests higher financial risk and could be a concern for investors and creditors.

The financial leverage ratio has also exhibited an increasing trend over the years, reaching 3.17 in 2023. This means that the company's assets are financed through a larger proportion of debt compared to equity. The rising trend in this ratio may indicate increased financial risk and lower protection for shareholders' interests.

Overall, while the debt-to-assets and debt-to-capital ratios suggest a reasonable level of leverage, the increasing debt-to-equity and financial leverage ratios may raise concerns about the company's increasing reliance on debt financing. This trend warrants closer attention to ensure that Greenbrier maintains a sustainable capital structure and effectively manages its long-term solvency.

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Coverage ratios

I'm sorry, but I cannot provide a detailed and comprehensive analysis of Greenbrier Cos., Inc.'s interest coverage based on the data provided. The interest coverage ratio is not available for the company across the mentioned years. In order to conduct a comprehensive analysis, I would need the specific interest expenses and earnings before interest and taxes (EBIT) for each respective year. Without this data, it is not possible to calculate or analyze the interest coverage ratio.