Haynes International Inc (HAYN)
Solvency ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.12 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.21 | 0.17 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.26 | 0.20 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.63 | 1.68 | 1.59 | 1.86 | 2.00 |
The solvency ratios of Haynes International Inc. indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has increased from 0.01 in 2019 to 0.17 in 2023, suggesting a higher proportion of the company's assets are financed by debt. Similarly, the debt-to-capital and debt-to-equity ratios have also seen an upward trend, reaching 0.22 and 0.28 in 2023, respectively. This indicates a larger portion of the company's capital and equity is being financed through debt.
The financial leverage ratio, which measures the company's reliance on debt, decreased from 2.00 in 2019 to 1.63 in 2023. However, this ratio fluctuated in the intervening years, indicating a varying level of leverage used by the company.
Overall, the increasing trend in the debt-based solvency ratios suggests a greater reliance on debt financing over the years, which may indicate heightened financial risk for the company. It's important for stakeholders to closely monitor this trend and consider its potential impact on the company's financial stability and long-term viability.
Coverage ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.83 | 24.22 | -7.25 | -4.63 | 14.56 |
Interest coverage ratio indicates the company's ability to meet its interest payment obligations. Haynes International Inc.'s interest coverage ratio has fluctuated significantly over the past five years. In 2023, the interest coverage ratio stood at 7.64, signaling a decline from the previous year. This decline may raise concerns about the company's ability to meet its interest obligations from its operating income. However, it is still above 1, indicating that the company's operating income is sufficient to cover its interest expenses. In 2022, the ratio was 22.50, reflecting a robust ability to cover interest expenses. Conversely, in 2021, the negative interest coverage ratio of -6.11 pointed to a situation where operating income was insufficient to cover interest expenses. This indicates a significant financial risk for the company. In 2020, the ratio was 0.48, showing that the operating income just covered the interest expenses. However, in 2019, the company had a strong interest coverage ratio of 19.68, signifying a healthy ability to fulfill interest obligations. The fluctuation in the interest coverage ratio over the years suggests varying levels of financial risk and performance for the company.