Haynes International Inc (HAYN)
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 | 0.16 | 0.16 | 0.14 | 0.16 | 0.13 | 0.12 | 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 | 0.20 | 0.21 | 0.19 | 0.21 | 0.18 | 0.17 | 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 | 0.25 | 0.26 | 0.24 | 0.27 | 0.23 | 0.20 | 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 | 1.59 | 1.63 | 1.66 | 1.69 | 1.71 | 1.68 | 1.74 | 1.64 | 1.56 | 1.59 | 1.91 | 1.89 | 1.86 | 1.86 | 2.05 | 2.05 | 2.00 | 2.00 | 1.78 | 1.78 |
Haynes International Inc.'s solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the quarters, indicating that around 15% to 17% of the company's total assets are financed by debt. This suggests a conservative approach to leverage, with a low level of financial risk.
Similarly, the debt-to-capital and debt-to-equity ratios show consistent patterns, hovering between 0.20 to 0.28 and indicating that a moderate portion of the company's capital structure is attributed to debt. The slight increase over the quarters in these ratios may signal increased reliance on debt financing, potentially to support growth or investment opportunities.
The financial leverage ratio, which measures the proportion of the company's assets that are financed by debt, shows some fluctuation but remains relatively steady around the 1.6 to 1.7 range. This indicates that the company has a moderate level of financial leverage, with a higher portion of assets financed by debt compared to equity.
Overall, the solvency ratios suggest that Haynes International Inc. has maintained a prudent approach to managing its financial obligations, with a balanced mix of debt and equity in its capital structure. However, the slight upward trend in some ratios may warrant further monitoring to ensure sustainable debt levels and financial stability in the long term.
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 | 7.16 | 7.83 | 9.75 | 14.05 | 17.65 | 24.22 | 23.94 | 17.00 | 6.68 | -7.25 | -15.67 | -22.07 | -14.96 | -4.63 | 7.28 | 23.77 | 20.57 | 14.56 | 11.21 | 4.20 |
Haynes International Inc.'s interest coverage ratio has shown a declining trend over the past eight quarters, indicating a potential deterioration in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). The interest coverage ratio has decreased from a high of 22.64 in Q2 2022 to 6.98 in Q1 2024.
A declining interest coverage ratio suggests that the company may be at a higher risk of defaulting on its debt obligations as it is generating less income relative to its interest expenses. This could be a cause for concern for lenders and investors as it may signal financial distress within the company.
It is important for stakeholders to closely monitor Haynes International Inc.'s interest coverage ratio in the upcoming quarters to assess whether the trend stabilizes or improves. This will provide insights into the company's ability to meet its debt obligations and manage its financial health effectively.