Warrior Met Coal Inc (HCC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.06 | 0.15 | 0.23 | 0.27 |
| Debt-to-capital ratio | 0.07 | 0.08 | 0.17 | 0.28 | 0.34 |
| Debt-to-equity ratio | 0.07 | 0.08 | 0.21 | 0.39 | 0.52 |
| Financial leverage ratio | 1.24 | 1.26 | 1.40 | 1.68 | 1.92 |
Warrior Met Coal Inc's solvency ratios indicate a positive trend towards a stronger financial position over the years. The Debt-to-Assets ratio has decreased from 0.27 in 2020 to 0.06 in 2024, signifying a lower proportion of debt in relation to total assets. This suggests improved financial stability and lower financial risk.
Similarly, the Debt-to-Capital ratio has shown a decline from 0.34 in 2020 to 0.07 in 2024, reflecting a decreasing reliance on debt for financing the company's operations. The Debt-to-Equity ratio has also decreased from 0.52 in 2020 to 0.07 in 2024, indicating a reduced dependence on debt capital relative to shareholder equity.
The Financial Leverage ratio has shown a consistent downward trend from 1.92 in 2020 to 1.24 in 2024, reflecting a decreasing level of financial leverage and a more conservative capital structure. Overall, the declining trend in these solvency ratios suggests that Warrior Met Coal Inc has been effectively managing its debt levels and improving its financial strength and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 59.68 | 279.80 | 244.04 | 62.47 | -13.65 |
Warrior Met Coal Inc's interest coverage has shown significant fluctuations over the years. As of December 31, 2020, the company's interest coverage ratio was negative at -13.65, indicating that the company's earnings were insufficient to cover its interest expenses. However, there has been a notable improvement in the subsequent years, with the interest coverage ratio increasing to 62.47 in December 31, 2021, and further improving to 244.04 in December 31, 2022. By December 31, 2023, the interest coverage ratio had increased significantly to 279.80, highlighting the company's improved ability to cover its interest obligations. There was a slight decrease in the interest coverage ratio to 59.68 by December 31, 2024, but the ratio remained at a relatively healthy level overall. The upward trend in the interest coverage ratio indicates that Warrior Met Coal Inc has been able to generate sufficient earnings to comfortably meet its interest expenses in recent years.