Huntington Ingalls Industries Inc (HII)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.23 | 0.31 | 0.21 | 0.18 |
| Debt-to-capital ratio | 0.35 | 0.42 | 0.54 | 0.47 | 0.45 |
| Debt-to-equity ratio | 0.54 | 0.72 | 1.17 | 0.89 | 0.81 |
| Financial leverage ratio | 2.74 | 3.11 | 3.78 | 4.29 | 4.43 |
Huntington Ingalls Industries Inc's solvency ratios display a trend of improvement over the past five years. The debt-to-assets ratio has decreased steadily from 0.31 in 2021 to 0.22 in 2023, indicating that the company has been able to reduce its reliance on debt to finance its assets.
Similarly, the debt-to-capital ratio has shown a declining pattern from 0.54 in 2021 to 0.37 in 2023, reflecting a more optimal capital structure with lower debt levels relative to the company's total capital.
The debt-to-equity ratio has also exhibited a positive trend, decreasing from 1.17 in 2021 to 0.60 in 2023. This signifies that Huntington Ingalls Industries has been reducing its debt burden in relation to its equity, which is a favorable indicator of financial health.
Furthermore, the financial leverage ratio has declined from 4.43 in 2019 to 2.74 in 2023, suggesting a reduction in the company's financial risk and leverage position over the years.
Overall, the improving solvency ratios of Huntington Ingalls Industries Inc indicate a strengthening financial position and a better ability to meet its long-term debt obligations and sustain its operations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.98 | 8.05 | 7.99 | 8.11 | 10.76 |
The interest coverage ratio for Huntington Ingalls Industries Inc has shown some fluctuation over the past five years, ranging from a low of 5.53 in 2022 to a high of 10.93 in 2019. This ratio measures the company's ability to cover its interest expenses with its operating income, with a higher ratio indicating a better ability to meet interest obligations.
In 2023, the interest coverage ratio improved to 6.96, indicating the company's operating income was nearly seven times its interest expenses. This suggests that Huntington Ingalls Industries Inc had a strong ability to meet its interest obligations in 2023, although it was not as high as the peak observed in 2019.
It is important to note that while the trend in interest coverage ratio has been somewhat variable over the past five years, the company has generally maintained a reasonable level of coverage, which is a positive indicator of its financial health and ability to manage its debt obligations.