Insteel Industries Inc (IIIN)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.20 | 1.17 | 1.21 | 1.29 | 1.28 |
The solvency ratios of Insteel Industries Inc show a consistent trend of having low to negligible debt levels in relation to its assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00, indicating that the company has not relied significantly on debt to finance its operations or growth.
However, the financial leverage ratio, which measures the overall debt level of a company in relation to its equity, has shown some fluctuation over the years. The ratio increased slightly from 1.17 in 2023 to 1.20 in 2024, but it remains relatively low compared to industry averages. This indicates that while Insteel Industries has a certain level of debt in relation to its equity, it is still considered moderate and manageable.
Overall, based on the solvency ratios presented, Insteel Industries Inc appears to have a strong financial position with little reliance on debt for its operations and investments.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 285.12 | 480.94 | 1,778.22 | 897.91 | 229.02 |
The interest coverage ratio for Insteel Industries Inc has shown significant fluctuations over the past five years. In 2024, the interest coverage ratio stood at 285.12, indicating the company's strong ability to cover its interest expenses with its earnings. This was a decrease from the previous year's ratio of 480.94, but still at a healthy level.
In 2023, Insteel Industries Inc reported an exceptionally high interest coverage ratio of 1,778.22, reflecting a substantial increase compared to the previous year. This exceptionally high ratio suggests that the company generated ample earnings to cover its interest expenses by a large margin.
In 2022, the interest coverage ratio decreased to 897.91, which, although lower compared to the previous year, still indicates a strong ability to meet interest obligations.
In 2021, the interest coverage ratio was 229.02, showing a decline from the previous year. Although this ratio is lower compared to prior years, it still indicates that the company's earnings were more than sufficient to cover its interest expenses.
Overall, the fluctuations in Insteel Industries Inc's interest coverage ratio over the past five years reflect varying levels of profitability and financial stability. The company's ability to cover its interest expenses has generally been strong, with some years showing exceptionally high ratios which may be attributed to higher profitability or lower interest expenses.