Howmet Aerospace Inc (HWM)
Solvency ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.31 | 2.34 | 2.50 | 2.55 | 2.58 | 2.63 | 2.71 | 2.71 | 2.85 | 3.03 | 2.94 | 2.93 | 2.91 | 2.89 | 2.88 | 3.00 | 3.20 | 3.24 | 3.29 | 3.86 |
Howmet Aerospace Inc has shown exceptional solvency ratios over the past few years, with consistent and stable values across various metrics. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00, indicating that the company has not taken on any significant debt in relation to its assets or capital structure.
Furthermore, the financial leverage ratio has shown a declining trend from 3.86 in March 2020 to 2.31 in December 2024. This highlights a decreasing reliance on debt to finance its operations, signaling improved financial stability and reduced risk of financial distress.
Overall, the solvency ratios of Howmet Aerospace Inc demonstrate a strong financial position and effective management of its debt levels, which may contribute to its long-term sustainability and resilience in the face of economic challenges.
Coverage ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.60 | 7.50 | 6.63 | 6.04 | 5.47 | 4.83 | 4.16 | 3.87 | 3.65 | 3.33 | 2.93 | 2.43 | 2.15 | 2.44 | 2.26 | 1.54 | 1.97 | 2.26 | 2.78 | 2.77 |
Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest payment obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
Analyzing the interest coverage ratio of Howmet Aerospace Inc over the specified periods reveals fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio ranged from a low of 1.54 as of March 31, 2021, to a high of 8.60 as of December 31, 2024.
A ratio below 1 implies that the company is not generating enough earnings to cover its interest expenses, indicating potential financial distress or insolvency risk. On the other hand, a ratio above 1 indicates that the company is generating sufficient earnings to cover its interest payments.
It is noteworthy that Howmet Aerospace Inc showed an improving trend in its interest coverage ratio from March 31, 2021, onwards, reaching a comfortable level of 8.60 as of December 31, 2024. This improvement suggests enhanced financial stability and a reduced risk of defaulting on debt obligations.
Overall, the trend in Howmet Aerospace Inc's interest coverage ratio indicates the company's growing ability to meet its interest payment obligations, which is a positive indicator of its financial health and viability.