Hillenbrand Inc (HI)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.39 | 0.37 | 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 |
| Debt-to-capital ratio | 0.57 | 0.59 | 0.56 | 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 |
| Debt-to-equity ratio | 1.32 | 1.47 | 1.26 | 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 |
| Financial leverage ratio | 3.68 | 3.74 | 3.37 | 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 |
Hillenbrand Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight fluctuation over the analyzed periods, ranging from 0.27 to 0.44. This ratio indicates that, on average, 36-44% of Hillenbrand's assets are financed by debt.
The debt-to-capital ratio has also displayed variability, with values between 0.44 and 0.64. This metric highlights the proportion of the company's capital that is funded by debt, showing that, on average, 45-64% of the capital structure is comprised of debt.
The debt-to-equity ratio has been on a similar trajectory, ranging from 0.80 to 1.81. This ratio demonstrates the extent to which the company relies on debt financing in relation to equity, indicating that, on average, the company's debt is 0.80-1.81 times the size of its equity.
Lastly, the financial leverage ratio shows how much debt the company is using in comparison to its equity, with values fluctuating between 2.86 and 4.15. This ratio suggests that, on average, Hillenbrand's financial leverage is 2.86-4.15 times its equity.
Overall, these solvency ratios suggest that Hillenbrand Inc has been managing its debt levels carefully, with fluctuations over time but generally maintaining a balanced approach to financing its operations.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.20 | -0.41 | 2.96 | 9.33 | 10.63 | 11.30 | 11.03 | 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a greater ability to meet interest obligations.
From the data provided, we observe fluctuations in Hillenbrand Inc's interest coverage ratio over the past several quarters. The interest coverage ratio was negative in the most recent quarter, indicating that the company's operating income was insufficient to cover its interest expenses.
Prior to the recent downturn, there was a consistent upward trend in the interest coverage ratio, with values ranging between 2.96 and 11.30 in the preceding quarters. This suggests a relatively strong ability to meet interest obligations during that period.
It's crucial for stakeholders to closely monitor the interest coverage ratio of Hillenbrand Inc to ensure the company's financial health and ability to meet its debt obligations. The recent negative interest coverage ratio should be investigated further to determine the underlying reasons for the deterioration and appropriate actions should be taken to improve the company's financial position.