Acushnet Holdings Corp (GOLF)

Acushnet Holdings Corp's solvency ratios indicate a strong financial position with consistently low debt levels across various metrics. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from 2020 to 2024, reflecting that the company's total debt is negligible compared to its assets, capital, and equity.

However, the Financial leverage ratio shows a slight trend of increase over the years, with values rising from 1.90 in 2020 to 2.85 in 2024. This indicates that the company's reliance on debt to finance its operations has been gradually increasing, albeit from a low base.

Overall, the stable and low debt levels suggest that Acushnet Holdings Corp has a solid solvency position and is not overly leveraged, which can enhance its ability to meet financial obligations and weather economic downturns. However, management should continue to monitor the trend in the Financial leverage ratio to ensure prudent debt management and maintain a healthy balance sheet.

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Coverage ratios

Based on the provided data, Acushnet Holdings Corp's interest coverage ratio has shown fluctuation over the past few years. The interest coverage ratio for the fiscal year ending December 31, 2020, was 8.05, indicating that the company generated operating profits 8.05 times greater than its interest expense for that period.

In the following years, the interest coverage ratio improved significantly. By December 31, 2021, the ratio increased to 33.02, demonstrating a substantial increase in the company's ability to cover interest payments from its operating profits. This indicates a strong financial position and lower risk of default.

However, in the subsequent years, the interest coverage ratio declined. By December 31, 2024, the ratio had dropped to 5.56, signaling that the company's operating profits were only 5.56 times greater than its interest expenses. This decrease may suggest potential financial challenges in meeting interest obligations or a shift in the company's financial performance.

Overall, while Acushnet Holdings Corp has shown improvement in its interest coverage ratio over the years, the recent decline raises some concerns about its ability to comfortably cover interest expenses from operating profits. Further monitoring of the company's financial performance and debt management practices may be necessary to assess its financial stability effectively.