Graco Inc (GGG)
Solvency ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.06 | 0.07 | 0.07 | 0.08 | 0.14 | 0.20 | 0.21 | 0.10 | 0.12 | 0.11 | 0.11 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.04 | 0.04 | 0.04 | — | — | 0.04 | 0.09 | 0.09 | 0.10 | 0.10 | 0.19 | 0.28 | 0.28 | 0.14 | 0.16 | 0.16 | 0.17 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.04 | 0.04 | 0.04 | — | — | 0.04 | 0.10 | 0.10 | 0.11 | 0.12 | 0.24 | 0.39 | 0.39 | 0.16 | 0.20 | 0.19 | 0.21 |
| Financial leverage ratio | 1.22 | 1.22 | 1.28 | 1.28 | 1.31 | 1.36 | — | — | 1.43 | 1.52 | 1.50 | 1.51 | 1.55 | 1.71 | 1.91 | 1.91 | 1.65 | 1.66 | 1.77 | 1.83 |
Graco Inc's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has been consistently low over the past few quarters, suggesting that the company relies less on debt to finance its assets. The debt-to-capital and debt-to-equity ratios show a similar trend of low leverage, indicating a strong financial position with minimal reliance on borrowed funds.
The financial leverage ratio has fluctuated but generally remained below 2, signaling that the company is not highly leveraged. This implies that Graco Inc has a stable capital structure and is less vulnerable to financial risk associated with high levels of debt.
Overall, Graco Inc's solvency ratios reflect a sound financial position with a conservative approach to financing, which may provide stability and resilience in challenging economic conditions.
Coverage ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 118.28 | 109.07 | 102.75 | 101.75 | 58.16 | 48.81 | 43.39 | 39.68 | 50.78 | 51.73 | 49.42 | 38.27 | 34.21 | 31.77 | 28.04 | 33.11 | 31.96 | 28.72 | 29.58 | 28.51 |
Graco Inc's interest coverage ratio has shown a generally positive trend over the past five quarters, indicating the company's ability to meet its interest obligations with its earnings. The interest coverage ratio has consistently been above 1, suggesting that Graco Inc is generating enough operating income to cover its interest expenses.
The interest coverage ratio has more than doubled from 28.51 in Q1 2019 to 118.28 in Q4 2023, reflecting significant improvement in the company's ability to service its debt with its operating income. This trend indicates a strengthening financial position for Graco Inc and reduced risk of default on its debt obligations.
Overall, the increasing interest coverage ratio for Graco Inc points towards a healthy financial position and efficient management of debt. It indicates that the company has sufficient earnings to comfortably cover its interest payments, which is a positive signal for investors and creditors.