Hexcel Corporation (HXL)

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	0.24	0.26	0.27	0.26	0.25	0.29	0.29	0.30	0.29	0.31	0.31	0.32	0.32	0.34	0.39	0.40	0.34	0.35	0.35	0.37
Debt-to-capital ratio	0.29	0.31	0.32	0.32	0.32	0.36	0.35	0.37	0.36	0.37	0.38	0.38	0.38	0.40	0.47	0.49	0.42	0.44	0.44	0.46
Debt-to-equity ratio	0.41	0.46	0.47	0.47	0.47	0.55	0.55	0.58	0.55	0.59	0.60	0.61	0.61	0.67	0.88	0.98	0.73	0.79	0.77	0.85
Financial leverage ratio	1.70	1.73	1.75	1.79	1.83	1.92	1.90	1.92	1.90	1.92	1.94	1.95	1.93	1.98	2.24	2.42	2.16	2.23	2.22	2.31

Hexcel Corp.'s solvency ratios reflect the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.

The debt-to-assets ratio has shown a relatively stable trend over the past eight quarters, ranging from 0.24 to 0.30. This ratio indicates that, on average, around 24% to 30% of Hexcel's assets are financed by debt, with a decreasing trend observed over the recent quarters.

The debt-to-capital and debt-to-equity ratios also show a consistent pattern of decrease over the same period. The debt-to-capital ratio has ranged from 0.29 to 0.37, reflecting the proportion of capital contributed by debt, while the debt-to-equity ratio has ranged from 0.41 to 0.58, indicating how much of the company's assets are financed by creditors versus shareholders.

Furthermore, the financial leverage ratio, which measures the extent to which the company uses debt to finance its operations, has decreased from 1.92 to 1.70 over the past year. This suggests that Hexcel has been reducing its reliance on debt financing and improving its financial leverage position.

Overall, based on the solvency ratios, Hexcel Corp. appears to have a strong financial position with a decreasing trend in its debt ratios, indicating a well-managed balance between debt and equity financing.

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	6.33	5.85	5.58	5.70	4.84	4.36	3.81	2.48	1.35	0.17	-1.39	-1.59	0.30	3.09	6.32	8.58	9.43	9.44	9.28	9.54

The interest coverage ratio of Hexcel Corp. has shown an improving trend over the past eight quarters, indicating the company's ability to meet its interest obligations from its operating income. In Q1 2022, the interest coverage ratio was at its lowest point of 2.61, suggesting a potential risk in meeting interest payments. However, the ratio has been consistently increasing since then, reaching a peak of 6.60 in Q3 2023. This improvement signifies a strengthening ability of Hexcel Corp. to cover its interest expenses with its operating earnings. Overall, the upward trend in the interest coverage ratio reflects a positive financial health indicator for the company.