Hayward Holdings Inc (HAYW)

Hayward Holdings Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has decreased slightly from 0.38 in 2022 to 0.37 in 2023, indicating that the company has reduced its reliance on debt to finance its assets. This suggests a relatively lower risk as a lower ratio signifies a smaller proportion of assets funded by debt.

Similarly, the debt-to-capital ratio decreased from 0.47 in 2022 to 0.45 in 2023, showing a more conservative capital structure where a smaller proportion of capital is derived from debt. This reduction may indicate improved financial stability and reduced financial risk for the company.

The debt-to-equity ratio decreased from 0.90 in 2022 to 0.83 in 2023, suggesting that the company has reduced its reliance on debt funding in relation to equity financing. A lower debt-to-equity ratio generally indicates a stronger financial position and less financial leverage.

The financial leverage ratio slightly decreased from 2.35 in 2022 to 2.25 in 2023, signaling a lower level of debt financing relative to equity. A lower financial leverage ratio implies less risk associated with debt repayment and potentially lower financial distress.

Overall, Hayward Holdings Inc's solvency ratios show positive trends with decreasing debt levels relative to assets, capital, and equity. These improvements indicate a more conservative and sustainable financial structure, potentially enhancing the company's long-term financial health and ability to weather economic challenges.

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Coverage ratios

Hayward Holdings Inc's interest coverage ratio has shown a declining trend over the past three years. In 2021, the company had an interest coverage ratio of 6.55, which decreased to 5.72 in 2022 and further dropped to 2.56 in 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. A lower interest coverage ratio may suggest a higher financial risk for the company, as it may be more vulnerable to changes in interest rates or a decrease in operating income. Hayward Holdings Inc should closely monitor its interest coverage ratio and take proactive measures to improve it in order to ensure its financial stability and sustainability.