Hillenbrand Inc (HI)

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 0.36 0.36 0.28 0.27 0.39 0.32 0.31 0.30 0.30 0.30 0.30 0.31 0.34 0.38 0.42 0.44 0.41 0.28 0.17 0.19
Debt-to-capital ratio 0.54 0.55 0.45 0.44 0.62 0.53 0.52 0.49 0.50 0.50 0.50 0.50 0.54 0.59 0.62 0.64 0.62 0.45 0.29 0.32
Debt-to-equity ratio 1.20 1.22 0.80 0.80 1.63 1.13 1.08 0.97 0.98 1.00 0.99 1.00 1.15 1.43 1.62 1.81 1.62 0.82 0.41 0.48
Financial leverage ratio 3.31 3.40 2.86 2.95 4.20 3.57 3.45 3.24 3.24 3.32 3.28 3.23 3.39 3.77 3.89 4.15 3.92 2.96 2.42 2.49

The solvency ratios of Hillenbrand Inc indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt for its capital structure.

The debt-to-assets ratio has shown some fluctuation over the quarters, ranging from 0.27 to 0.39, with a recent figure of 0.37. This ratio suggests that around 37% of the company's assets are financed by debt, indicating a moderate level of leverage.

The debt-to-capital ratio has also displayed variability, ranging from 0.45 to 0.62, with a current value of 0.55. This ratio signifies that 55% of the company's capital structure is attributed to debt, highlighting a significant reliance on borrowed funds.

The debt-to-equity ratio has shown notable fluctuations, with values ranging from 0.80 to 1.63, and a recent figure of 1.21. This ratio indicates that the company has seen a high level of debt relative to equity, which could pose a higher financial risk.

The financial leverage ratio for Hillenbrand Inc has ranged from 2.86 to 4.20 over the quarters, with the most recent value standing at 3.31. This ratio reflects the company's total assets relative to equity, showing the extent to which the company is leveraging its equity to finance assets.

Overall, the analysis of these solvency ratios suggests that while Hillenbrand Inc has moderate to high levels of debt in its capital structure, it also has a considerable reliance on borrowed funds. This indicates a need for careful management of debt levels to ensure sustainable financial health and meet long-term obligations.

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 8.74 9.88 10.48 10.64 5.13 5.56 4.77 4.64 4.99 5.42 7.59 7.38 5.12 3.87 3.13 3.53 7.98 12.46 15.52 15.74

Interest coverage is a key financial ratio used to assess a company's ability to meet its interest obligations with its operating income. Hillenbrand Inc's interest coverage ratio has shown a fluctuating trend over the past eight quarters, ranging from a low of 3.64 in Q1 2024 to a high of 5.89 in Q4 2022.

The overall trend indicates a general decline in interest coverage ratio over the past year, with the ratio consistently decreasing from Q4 2022 to Q1 2024. This downward trend may raise some concerns about the company's ability to comfortably meet its interest payments using its operating income.

While the interest coverage ratios above 2 are typically considered acceptable, a higher ratio implies a stronger ability to cover interest expenses. Hillenbrand Inc's recent ratios, though showing a decline, have generally remained above 3, indicating that the company has been generating sufficient operating income to cover its interest obligations.

It would be important for investors and stakeholders to monitor this ratio closely in the coming quarters to ensure that Hillenbrand Inc can maintain a healthy level of interest coverage and manage its debt obligations effectively.