Insteel Industries Inc (IIIN)
Solvency ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.17 | 1.21 | 1.29 | 1.28 | 1.19 |
The solvency ratios of Insteel Industries, Inc. reflect a consistently low level of indebtedness over the past five years, as indicated by the debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00. This demonstrates the company's ability to fund its assets and operations primarily through equity rather than debt.
Although the debt ratios are minimal, the financial leverage ratio has fluctuated over the years, indicating changes in the company's use of debt to support its operations. The financial leverage ratio, which measures the proportion of assets financed by debt compared to equity, has decreased from 1.29 in 2021 to 1.17 in 2023. This indicates a favorable shift towards lower reliance on debt for asset financing.
In general, these solvency ratios suggest that Insteel Industries, Inc. has maintained a strong financial position with minimal reliance on debt financing, giving the company a more stable and flexible capital structure. It also indicates a conservative approach to managing financial risk, as the company is not heavily burdened by debt obligations.
Coverage ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 480.94 | 1,778.22 | 897.91 | 229.02 | 45.38 |
Based on the provided data, Insteel Industries, Inc. did not have a reported interest coverage ratio for the fiscal years ending September 30, 2023, and October 3, 2020. However, the interest coverage for the fiscal year ending October 2, 2021, was extremely high at 1,188.80, indicating the company's strong ability to meet interest obligations. Without additional data, it is difficult to draw a comprehensive analysis for the complete trend in interest coverage. It is advisable to utilize additional financial information to thoroughly assess the company's interest coverage over time.