Hexcel Corporation (HXL)

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	0.26	0.28	0.28	0.25	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
Debt-to-capital ratio	0.31	0.34	0.34	0.30	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
Debt-to-equity ratio	0.46	0.51	0.51	0.44	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
Financial leverage ratio	1.78	1.80	1.80	1.73	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

Hexcel Corporation's solvency ratios have shown a positive trend over the past few years, indicating a strong financial position. The Debt-to-assets ratio has decreased steadily from 0.40 in March 2020 to 0.26 in December 2023 before slightly increasing to 0.28 in June 2024. This decreasing trend suggests that the company has been effectively managing its debt in relation to its assets.

Similarly, the Debt-to-capital ratio has exhibited a downward trend, decreasing from 0.49 in March 2020 to 0.31 in December 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments, which is a positive sign of financial stability.

The Debt-to-equity ratio has also shown a declining trend from 0.98 in March 2020 to 0.46 in December 2024. This decreasing ratio suggests that the company's reliance on debt compared to equity has been decreasing over time, which is a healthy sign of financial health and lower financial risk.

Lastly, the Financial leverage ratio has shown a consistent decline from 2.42 in March 2020 to 1.78 in December 2024. This trend indicates that the company has been reducing its overall financial leverage, which can lead to lower financial risk and increased financial stability.

Overall, Hexcel Corporation's solvency ratios demonstrate a positive and improving financial position, with decreasing levels of debt relative to assets, capital, equity, and leverage over the years.

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	5.96	7.32	7.20	6.60	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

The interest coverage ratio of Hexcel Corporation has shown fluctuating trends over the past few years. Starting from March 31, 2020, where the ratio was 8.58, it gradually decreased to its lowest point of 0.17 on September 30, 2021, indicating a potential risk as the company's ability to cover its interest expenses declined significantly. However, from that point onwards, there has been a gradual improvement in the interest coverage ratio.

By the end of December 31, 2024, the interest coverage ratio reached 5.96. This improvement suggests that the company's ability to cover its interest expenses with its operating income improved over time. Overall, the company appears to have managed to strengthen its financial position and operational performance in terms of covering its interest obligations by generating sufficient income. However, it is advisable for investors to monitor the trend of interest coverage ratio to ensure that Hexcel Corporation maintains a healthy financial position in the long term.