Huntington Ingalls Industries Inc (HII)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.20 | 0.23 | 0.31 | 0.21 |
| Debt-to-capital ratio | 0.40 | 0.35 | 0.42 | 0.54 | 0.47 |
| Debt-to-equity ratio | 0.67 | 0.54 | 0.72 | 1.17 | 0.89 |
| Financial leverage ratio | 2.60 | 2.74 | 3.11 | 3.78 | 4.29 |
Huntington Ingalls Industries Inc's solvency ratios demonstrate a mixed trend over the past five years. The Debt-to-Assets ratio, representing the proportion of the company's assets financed by debt, increased from 0.21 in 2020 to 0.31 in 2021 before declining to 0.20 in 2023 and then rising slightly to 0.26 in 2024.
The Debt-to-Capital ratio, which indicates the percentage of capital structure financed by debt, showed a similar pattern. It rose from 0.47 in 2020 to 0.54 in 2021, declined to 0.35 in 2023, and then increased to 0.40 in 2024.
The Debt-to-Equity ratio, showing the proportion of equity and debt in the company's capital structure, increased significantly from 0.89 in 2020 to 1.17 in 2021, but then decreased to 0.54 in 2023 before rising to 0.67 in 2024.
The Financial Leverage ratio, reflecting the company's ability to meet its financial obligations, decreased over the five-year period from 4.29 in 2020 to 2.60 in 2024. This indicates an improvement in the company's financial leverage and suggests a potentially stronger financial position in meeting its debt obligations.
Overall, the fluctuating solvency ratios of Huntington Ingalls Industries Inc suggest varying levels of debt utilization and financial leverage over the years, with notable improvements in financial leverage by 2024. Further analysis of the company's debt management strategies and overall financial health would be beneficial in assessing its long-term solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.77 | 9.98 | 8.05 | 7.99 | 8.11 |
Huntington Ingalls Industries Inc's interest coverage has been relatively stable over the past five years. The interest coverage ratio measures the company's ability to meet its interest payment obligations with its operating income.
The interest coverage ratios for the years 2020 to 2024 are 8.11, 7.99, 8.05, 9.98, and 7.77, respectively. These figures indicate that the company's operating income was 8.11 times the amount of its interest expenses in 2020, which implies the company had a comfortable buffer to cover its interest obligations.
In 2021 and 2024, the interest coverage ratios decreased slightly to 7.99 and 7.77, indicating a slight decrease in the company's ability to cover its interest payments with operating income during those years.
However, in 2023, the interest coverage ratio increased significantly to 9.98, signaling a strong improvement in the company's ability to cover its interest expenses with operating income.
Overall, based on the trend in the interest coverage ratios, Huntington Ingalls Industries Inc has generally maintained a healthy ability to meet its interest payment obligations with its operating income over the past five years, with some fluctuations in certain years. It is important for investors and lenders to monitor this ratio to ensure the company's financial stability and ability to manage its debt obligations.