Griffon Corporation (GFF)
Solvency ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.64 | 0.63 | 0.65 | 0.60 | 0.60 | 0.60 | 0.56 | 0.54 | 0.55 | 0.45 | 0.51 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.42 | 0.49 | 0.52 | 0.50 |
| Debt-to-capital ratio | 0.87 | 0.87 | 0.89 | 0.83 | 0.82 | 0.82 | 0.76 | 0.74 | 0.77 | 0.63 | 0.69 | 0.56 | 0.56 | 0.57 | 0.58 | 0.58 | 0.60 | 0.69 | 0.72 | 0.70 |
| Debt-to-equity ratio | 6.74 | 6.71 | 7.80 | 5.02 | 4.63 | 4.58 | 3.18 | 2.86 | 3.27 | 1.74 | 2.20 | 1.28 | 1.28 | 1.33 | 1.37 | 1.40 | 1.48 | 2.21 | 2.55 | 2.30 |
| Financial leverage ratio | 10.54 | 10.64 | 11.99 | 8.40 | 7.67 | 7.66 | 5.68 | 5.27 | 5.90 | 3.87 | 4.29 | 3.18 | 3.23 | 3.25 | 3.30 | 3.36 | 3.50 | 4.54 | 4.87 | 4.56 |
Griffon Corporation's solvency ratios have shown some fluctuations over the past few quarters. The debt-to-assets ratio has ranged from 0.45 to 0.65, indicating that, on average, around 45% to 65% of the company's assets are financed through debt. The trend has been generally stable, with a slight increase in the most recent quarter.
The debt-to-capital ratio has also shown some variability, fluctuating between 0.56 and 0.89. This ratio indicates the proportion of the company's capital that is funded by debt, and the higher values suggest a higher reliance on debt financing. The ratio has increased slightly in the most recent quarters.
The debt-to-equity ratio has displayed more significant variability, ranging from 1.28 to 7.80. This ratio reflects the extent to which the company's operations are funded by debt compared to equity. The higher values indicate a higher level of financial leverage, potentially increasing financial risk. There was a significant spike in this ratio in the March 2024 quarter, suggesting a higher reliance on debt during that period.
The financial leverage ratio, which measures the overall financial risk of the company, has also fluctuated, ranging from 3.18 to 11.99. This ratio indicates the company's ability to meet its financial obligations, with higher values indicating higher financial risk. The trend has been varying, suggesting changes in the overall financial risk profile of the company.
In summary, Griffon Corporation's solvency ratios have shown some fluctuations, with varying levels of debt reliance and financial risk over the quarters. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its financial obligations and manage its overall financial health.
Coverage ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.85 | 3.55 | 3.74 | 2.03 | 2.11 | -3.05 | -2.24 | -0.43 | -1.07 | 4.91 | 3.42 | 2.65 | 2.88 | 2.92 | 2.98 | 2.57 | 2.19 | 2.15 | 1.92 | 1.90 |
Griffon Corporation's interest coverage ratio has shown fluctuations over the past several quarters. The interest coverage ratio measures the company's ability to fulfill its interest payment obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company is more capable of covering its interest expenses.
In the recent quarter of September 30, 2024, Griffon Corporation's interest coverage ratio stood at 3.85, showing an improvement from the previous quarter's ratio of 3.55. This indicates that the company's earnings are 3.85 times its interest expense, reflecting a relatively healthy financial position in terms of servicing its debt.
However, it is important to note that Griffon Corporation faced challenges in managing its interest expenses in the past, as seen in negative interest coverage ratios in June 30, 2023, and March 31, 2023. Negative ratios suggest that the company's earnings were insufficient to cover its interest payments during those periods, indicating potential financial stress.
Overall, Griffon Corporation's interest coverage ratio has displayed volatility, with periods of both strength and weakness. Investors and stakeholders should continue to monitor the company's ability to generate sufficient earnings to cover its interest obligations to ensure sustainable financial health.