IDEX Corporation (IEX)

Idex Corporation's solvency ratios indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.

The Debt-to-assets ratio has shown a decreasing trend over the past five years, from 0.22 in 2019 to 0.23 in 2023. This suggests that the company's level of debt in relation to its total assets has been relatively stable, indicating a conservative approach to leveraging the balance sheet.

The Debt-to-capital ratio also demonstrates a decreasing trend, from 0.27 in 2019 to 0.27 in 2023. This ratio reflects the proportion of debt in the company's capital structure. The declining trend indicates that the company has been reducing its reliance on debt to finance its operations.

The Debt-to-equity ratio has similarly decreased over the five-year period, from 0.38 in 2019 to 0.37 in 2023. This ratio measures the extent to which the company's operations are funded by debt relative to equity. The decreasing trend is a positive indicator of a lower financial risk for the company.

The Financial leverage ratio, which measures the company's financial leverage or the extent to which it relies on debt, has also shown a decreasing trend from 1.69 in 2019 to 1.66 in 2023. This suggests that Idex Corporation has been managing its debt levels effectively, resulting in a lower financial risk profile.

Overall, Idex Corporation's solvency ratios demonstrate a prudent approach to managing its debt levels and indicate a favorable financial position with a decreasing reliance on debt financing over the past five years.

---

Coverage ratios

The interest coverage ratio for Idex Corporation has shown a fluctuating trend over the past five years. In 2023, the interest coverage ratio stands at 14.38, indicating that the company is generating operating profits 14.38 times higher than its interest expenses. This represents a slight decrease from the previous year's ratio of 19.02.

While the current ratio is solid, it is important to note that a higher interest coverage ratio is generally considered favorable as it suggests the company has more than enough earnings to cover its interest obligations. Despite the slight decrease in 2023, Idex Corporation has maintained healthy interest coverage levels over the past five years, which is a positive sign of the company's ability to meet its debt obligations from operating profits.