Hayward Holdings Inc (HAYW)

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
Debt-to-assets ratio	0.37	0.38	0.38	0.38	0.39	0.35	0.33	0.00	0.33
Debt-to-capital ratio	0.46	0.46	0.47	0.47	0.48	0.45	0.45	0.00	0.42
Debt-to-equity ratio	0.84	0.86	0.87	0.90	0.91	0.83	0.81	0.00	0.73
Financial leverage ratio	2.25	2.25	2.27	2.38	2.35	2.37	2.44	2.18	2.17

Hayward Holdings Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and manage debt effectively. The trends in the solvency ratios over the past eight quarters indicate the following:

1. Debt-to-assets ratio: The company's debt-to-assets ratio has shown relative stability in the range of 0.37 to 0.40 over the quarters, indicating that around 37% to 40% of the company's assets are financed through debt. This suggests that Hayward Holdings has maintained a reasonable level of leverage compared to its total assets.

2. Debt-to-capital ratio: The debt-to-capital ratio has also remained relatively consistent between 0.45 to 0.49, indicating that approximately 45% to 49% of the company's capital structure is comprised of debt. This ratio reflects a moderate level of financial leverage in relation to the company's total capital.

3. Debt-to-equity ratio: The debt-to-equity ratio has ranged from 0.72 to 0.96 over the quarters, indicating that the company has varied between having 72% to 96% of its total equity financed by debt. The increasing trend in this ratio suggests a higher reliance on debt financing to support the company's operations.

4. Financial leverage ratio: The financial leverage ratio, which measures the extent to which the company relies on debt to finance its operations, has fluctuated between 2.18 to 2.44. This indicates that the company has been operating with a level of financial leverage between 2.18 to 2.44 times its equity, indicating a moderate degree of financial risk.

Overall, the solvency ratios of Hayward Holdings Inc suggest that the company has maintained a stable level of leverage and has been able to manage its long-term debt obligations. However, the increasing trend in the debt-to-equity ratio raises concerns about the company's growing reliance on debt financing, which could potentially increase its financial risk in the future. Further analysis of the company's cash flow and debt repayment capabilities would be necessary to fully assess its solvency position.

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
Interest coverage	6.01	4.21	4.56	11.39	—	—	—	—	—

Hayward Holdings Inc's interest coverage ratio has shown a declining trend over the past few quarters. The company's ability to cover its interest expenses has decreased from 9.50 in Q2 2022 to 2.56 in Q4 2023. This indicates that the company's operating income may be less sufficient to cover its interest obligations in the most recent quarter. With a ratio below 1, it suggests the company is not generating enough earnings to cover its interest expenses. It is essential for investors and creditors to monitor the company's interest coverage ratio closely to assess its financial health and ability to meet its debt obligations.