Howmet Aerospace Inc (HWM)

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 0.34 0.37 0.39 0.39 0.41 0.42 0.41 0.42 0.41 0.41 0.41 0.39 0.41 0.41 0.41 0.31 0.28 0.28 0.33 0.32
Debt-to-capital ratio 0.46 0.49 0.51 0.51 0.54 0.56 0.55 0.55 0.55 0.54 0.54 0.54 0.57 0.57 0.58 0.55 0.52 0.51 0.55 0.53
Debt-to-equity ratio 0.87 0.98 1.06 1.06 1.16 1.27 1.22 1.22 1.20 1.19 1.17 1.15 1.31 1.34 1.36 1.21 1.07 1.04 1.22 1.14
Financial leverage ratio 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 3.83 3.72 3.69 3.55

The solvency ratios of Howmet Aerospace Inc have shown a mixed trend over the past eight quarters.

The debt-to-assets ratio, measuring the proportion of total assets financed by debt, has decreased from 0.41 in Q4 2022 to 0.36 in Q4 2023, indicating that the company is relying less on debt to fund its assets.

The debt-to-capital ratio, which assesses the extent of capital structure financed by debt, has also exhibited a declining trend from 0.54 in Q4 2022 to 0.48 in Q4 2023. This suggests a decrease in the reliance on debt financing in the company's capital structure.

The debt-to-equity ratio, reflecting the proportion of total equity and debt in the company's capital structure, has fluctuated over the quarters but generally shows a decreasing trend from 1.27 in Q3 2022 to 0.92 in Q4 2023. This implies that the company has been reducing its debt levels relative to equity.

The financial leverage ratio, which indicates the proportion of assets financed by debt relative to equity, has also decreased from 3.03 in Q3 2022 to 2.58 in Q4 2023, reflecting improved financial leverage and lower reliance on debt financing.

In conclusion, Howmet Aerospace Inc has exhibited improvements in its solvency ratios, indicating a decreased reliance on debt financing and a stronger financial position over the past quarters.

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 5.47 4.83 4.16 3.87 3.65 3.33 2.93 2.56 2.25 2.14 1.97 1.20 1.58 2.39 2.90 2.77 2.75 1.94 2.08 3.35

Interest coverage measures a company's ability to meet its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to cover interest payments.

In the case of Howmet Aerospace Inc, the interest coverage ratio has been gradually increasing over the past eight quarters, reflecting an improving ability to cover interest expenses with operating earnings. The ratio has shown a positive trend, increasing from 3.59 in Q1 2022 to 6.29 in Q4 2023.

This improvement signals that Howmet Aerospace Inc has been generating sufficient operating income to comfortably cover its interest obligations. A ratio above 1 indicates that the company is able to meet its interest payments, with higher ratios indicating a greater capacity to do so.

Overall, the consistent increase in the interest coverage ratio for Howmet Aerospace Inc suggests a positive trend in its financial health and ability to manage debt obligations. This trend is generally favorable for investors and creditors, as it indicates a reduced risk of default on interest payments.