Graco Inc (GGG)
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 | 1.21 | 1.22 | 1.31 | 1.43 | 1.55 |
Graco Inc's solvency ratios reflect a strong financial position with consistently low debt levels over the years.
1. Debt-to-assets ratio: This ratio indicates the proportion of total assets financed by debt. Graco Inc has maintained a debt-to-assets ratio of 0.00 across the years, implying that the company's assets are primarily funded through equity rather than debt.
2. Debt-to-capital ratio: This ratio compares the total debt to the total capital (debt + equity) employed by the company. Graco Inc's debt-to-capital ratio has also remained at 0.00 consistently, indicating a capital structure dominated by equity financing rather than debt.
3. Debt-to-equity ratio: This ratio measures the extent to which debt is used to finance the company's operations relative to equity. Graco Inc's debt-to-equity ratio has consistently been at 0.00, signaling a minimal reliance on debt for funding its operations.
4. Financial leverage ratio: This ratio assesses the company's financial risk by comparing its total assets to equity. Graco Inc's financial leverage ratio has shown a decreasing trend from 1.55 in 2020 to 1.21 in 2024, indicating a reduction in financial risk and a stronger equity position over the years.
Overall, the analysis of Graco Inc's solvency ratios suggests a prudent financial management strategy focused on maintaining a low debt level and a strong equity base, contributing to the company's overall financial stability and solvency.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 124.61 | 58.16 | 50.78 | 34.21 |
Graco Inc's interest coverage ratio has shown a positive trend over the years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio was 34.21 as of December 31, 2020, and improved to 50.78 by December 31, 2021. It further increased to 58.16 by December 31, 2022, demonstrating enhanced financial strength. However, there seems to be a sudden drop in the interest coverage to 0.00 as of December 31, 2024, which could suggest potential financial challenges or a significant change in the company's debt structure. Overall, the positive trend in the interest coverage ratio until 2023 reflects Graco Inc's strong ability to pay interest expenses from its operating income. Further investigation and monitoring may be needed to understand the drastic drop in the ratio in the most recent period.