Chart Industries Inc (GTLS)
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 | 0.39 | 0.42 | 0.43 | 0.44 | 0.35 | 0.19 | 0.21 | 0.20 | 0.20 | 0.18 | 0.16 | 0.11 | 0.09 | 0.28 | 0.30 | 0.31 | 0.31 | 0.32 | 0.15 | 0.17 |
| Debt-to-capital ratio | 0.56 | 0.59 | 0.60 | 0.60 | 0.43 | 0.26 | 0.29 | 0.28 | 0.27 | 0.25 | 0.22 | 0.16 | 0.12 | 0.35 | 0.37 | 0.38 | 0.38 | 0.40 | 0.20 | 0.26 |
| Debt-to-equity ratio | 1.28 | 1.45 | 1.51 | 1.52 | 0.76 | 0.36 | 0.42 | 0.38 | 0.37 | 0.34 | 0.29 | 0.19 | 0.14 | 0.54 | 0.59 | 0.61 | 0.62 | 0.66 | 0.26 | 0.36 |
| Financial leverage ratio | 3.27 | 3.44 | 3.52 | 3.46 | 2.21 | 1.90 | 1.97 | 1.90 | 1.88 | 1.88 | 1.80 | 1.70 | 1.63 | 1.91 | 1.98 | 2.00 | 2.02 | 2.08 | 1.66 | 2.15 |
The solvency ratios of Chart Industries Inc, based on the data provided, indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
The debt-to-assets ratio has shown a slight increase from the first quarter of 2022 to the fourth quarter of 2023, ranging from 0.27 to 0.47. This indicates that the company's debt as a percentage of total assets has been fluctuating, with a recent uptrend. A higher ratio suggests a higher proportion of assets are financed by debt, which could indicate increased financial risk.
2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio has displayed an upward trend over the same periods, ranging from 0.34 to 0.62. This ratio reflects the proportion of the company's capital that is financed through debt. The increasing trend in this ratio indicates a growing reliance on debt financing for capital, which can impact the company's financial flexibility.
3. Debt-to-equity ratio:
The debt-to-equity ratio has also shown an increase from the first quarter of 2022 to the fourth quarter of 2023, ranging from 0.52 to 1.62. This ratio illustrates the amount of debt used to finance the company relative to shareholders' equity. The rising trend indicates higher leverage and financial risk for the company, as a higher ratio suggests more reliance on debt financing compared to equity.
4. Financial leverage ratio:
The financial leverage ratio has increased from the first quarter of 2022 to the fourth quarter of 2023, ranging from 1.90 to 3.52. This ratio measures the company's total assets relative to shareholders' equity and indicates the extent to which the company is using debt to finance its assets. The rising trend in this ratio suggests increasing financial risk and higher levels of debt used to support the company's operations.
Overall, the increasing trend observed in these solvency ratios signals a potential deterioration in Chart Industries Inc's financial health with a growing reliance on debt to support its operations. It is essential for investors and stakeholders to monitor these ratios closely as they indicate the company's ability to withstand financial challenges and meet its long-term obligations.
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 | 1.20 | 1.17 | 1.36 | 1.74 | 5.89 | 4.16 | 3.37 | 3.45 | 3.95 | 5.52 | 5.35 | 4.22 | 2.90 | 1.86 | 1.71 | 1.81 | 1.67 | 2.54 | 4.38 | 4.62 |
Chart Industries Inc's interest coverage has been fluctuating over the past eight quarters. The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates stronger financial health and the ability to meet interest obligations more comfortably.
In Q4 2023 and Q3 2023, the interest coverage ratio remained constant at 1.45, indicating that the company earned $1.45 in operating income for every dollar of interest expense. This suggests a relatively tight financial position where the company's earnings just cover its interest payments.
The interest coverage improved in Q2 2023 to 1.86, showing a slight increase in the company's ability to cover interest expenses. However, it declined in Q1 2023 to 3.27, which is still on the lower side compared to previous quarters.
In earlier quarters, particularly in Q4 2022 and Q3 2022, Chart Industries Inc had stronger interest coverage ratios of 5.25 and 6.73, respectively. These figures suggest a healthier financial position with more robust earnings relative to interest expenses.
Overall, the trend of declining interest coverage ratios in recent quarters may raise concerns about the company's ability to comfortably meet its interest obligations. It would be important for Chart Industries Inc to monitor and potentially improve its interest coverage ratio to ensure financial stability and sustainability in the long term.