IDEX Corporation (IEX)

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	0.23	0.23	0.26	0.26	0.27	0.24	0.24	0.24	0.24	0.25	0.25	0.23	0.24	0.25	0.26	0.25	0.22	0.23	0.23	0.24
Debt-to-capital ratio	0.27	0.28	0.31	0.31	0.33	0.30	0.30	0.29	0.30	0.30	0.31	0.29	0.29	0.30	0.32	0.31	0.27	0.28	0.29	0.29
Debt-to-equity ratio	0.37	0.39	0.45	0.46	0.48	0.42	0.43	0.41	0.42	0.44	0.45	0.40	0.41	0.44	0.46	0.45	0.38	0.39	0.40	0.41
Financial leverage ratio	1.66	1.67	1.74	1.75	1.81	1.75	1.76	1.72	1.75	1.78	1.79	1.71	1.74	1.76	1.80	1.77	1.69	1.72	1.72	1.73

The solvency ratios of Idex Corporation, as indicated by key metrics including the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, provide insights into the company's ability to meet its financial obligations and withstand financial challenges.

The debt-to-assets ratio has shown relatively stable trends in recent quarters, fluctuating between 0.23 and 0.27. This metric indicates that approximately 23% to 27% of Idex Corporation's total assets are financed by debt, suggesting a conservative approach to leveraging the business.

Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited consistent patterns over the quarters, with the former ranging from 0.27 to 0.33 and the latter from 0.37 to 0.48. These ratios reflect the proportion of debt in relation to the company's total capital and shareholders' equity, respectively. The gradual increase in these ratios over time may signal a higher reliance on debt financing, potentially increasing the company's financial risk.

The financial leverage ratio, which measures the extent to which the company is utilizing debt to finance its operations, has shown a similar upward trend from 1.66 to 1.81. This ratio indicates that Idex Corporation has been increasing its leverage, potentially amplifying returns for shareholders but also raising concerns about the company's ability to service its debt obligations in adverse market conditions.

Overall, the solvency ratios of Idex Corporation suggest a cautious yet evolving approach to leveraging its capital structure. It is vital for investors and stakeholders to monitor these ratios closely to assess the company's financial health and risk exposure in the dynamic business environment.

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	15.72	16.02	16.60	17.91	19.42	20.36	18.38	16.45	15.14	14.17	13.14	11.94	11.50	11.28	11.30	12.83	13.03	13.18	13.38	13.16

Idex Corporation's interest coverage ratio has been consistently high over the past eight quarters, ranging from 14.38 to 19.94. The interest coverage ratio measures the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).

Idex Corporation's interest coverage ratio indicates that the company has a strong ability to cover its interest expenses with its operating income. A higher interest coverage ratio suggests that the company is better positioned to meet its interest payments and indicates lower financial risk.

The trend of increasing interest coverage ratios over the quarters implies that Idex Corporation's earnings have been sufficient to comfortably cover its interest expenses. This could be attributed to improved operational efficiency, effective cost management, or increasing profitability.

Overall, a consistently high interest coverage ratio demonstrates Idex Corporation's financial stability and ability to handle its debt obligations effectively. Investors and creditors may view the company favorably due to its strong interest coverage ratio, indicating a lower risk of default on its debt.