Graco Inc (GGG)
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 | 1.21 | 1.18 | 1.19 | 1.19 | 1.22 | 1.22 | 1.28 | 1.28 | 1.31 | 1.36 | 1.37 | 1.37 | 1.43 | 1.52 | 1.50 | 1.51 | 1.55 | 1.71 | 1.91 | 1.91 |
Graco Inc's solvency ratios indicate a strong financial position with a consistently low level of debt compared to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 consistently across the reporting periods, suggesting that the company has not relied heavily on debt financing to fund its operations or investments.
Furthermore, the financial leverage ratio has been decreasing over the years, starting at 1.91 in March 2020 and gradually declining to 1.21 by December 31, 2024. This downward trend signifies that Graco Inc has been reducing its reliance on debt to finance its assets and operations, which is a positive indication of lower financial risk and greater financial stability.
Overall, based on the solvency ratios provided, Graco Inc appears to have a sound financial structure with a conservative approach to debt management, which bodes well for its long-term financial health and stability.
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 | 155.46 | 183.36 | 146.93 | 108.72 | 102.22 | 107.60 | 101.93 | 101.75 | 58.16 | 48.81 | 43.39 | 39.68 | 50.78 | 51.76 | 49.39 | 41.18 | 37.10 | 34.85 | 31.00 | 33.30 |
Graco Inc's interest coverage has shown a general trend of improvement over the periods from March 31, 2020 to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest obligations with its operating income.
At the beginning of the period in March 31, 2020, the interest coverage ratio stood at 33.30, indicating that Graco Inc generated operating income 33.3 times greater than its interest expense for that period. This ratio improved steadily, reaching its peak at 183.36 on September 30, 2024.
However, there was a slight decline in the interest coverage ratio in the subsequent periods, dropping to 155.46 by December 31, 2024. Despite this decrease, the overall trend suggests that Graco Inc's ability to cover its interest expenses with operating income has been strong and improving over the years, indicating the company's financial health and stability in meeting its debt obligations.