Innospec Inc (IOSP)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.04 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.04 | 0.06 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.04 | 0.06 |
| Financial leverage ratio | 1.43 | 1.45 | 1.43 | 1.46 | 1.49 | 1.44 | 1.47 | 1.51 | 1.54 | 1.53 | 1.53 | 1.52 | 1.52 | 1.50 | 1.50 | 1.49 | 1.48 | — | 1.49 | 1.54 |
Innospec Inc's solvency ratios demonstrate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity.
The Debt-to-assets ratio has been consistently decreasing over the years, reaching 0.00 as of December 31, 2024. This indicates that the company has very little debt compared to its total assets, reflecting a low risk of insolvency.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have shown a downward trend, with both ratios also standing at 0.00 as of December 31, 2024. This suggests that the company relies very little on debt to finance its operations, maintaining a healthy balance between debt and capital/equity.
The Financial leverage ratio, which measures the company's overall debt levels in relation to its equity, has remained relatively stable around 1.5 over the years. A ratio around 1 indicates a balanced capital structure, indicating that the company is not overly reliant on debt financing.
Overall, the solvency ratios of Innospec Inc indicate a conservative financial strategy and sound financial health, with minimal debt levels and a strong ability to meet its financial obligations in the long term.
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 | 84.71 | 60.43 | 46.74 | 85.55 | 70.26 | 45.47 | 55.45 | 57.50 | 56.76 | 117.47 | 98.44 | 98.80 | 88.07 | 90.00 | 79.57 | 13.12 | 25.92 | 43.73 | 99.29 | 515.33 |
The interest coverage ratio measures a company's ability to service its debt obligations by comparing its earnings before interest and taxes (EBIT) to its interest expenses. A higher interest coverage ratio indicates a stronger ability to meet interest payments.
Innospec Inc's interest coverage ratio fluctuated over the period from March 31, 2020, to December 31, 2024. It started at a very high level of 515.33 on March 31, 2020, indicating a robust capability to cover its interest expenses. However, there was a significant decrease in the ratio by the end of the year, down to 25.92 on December 31, 2020, raising some concerns about the company's ability to pay its interest obligations comfortably.
The interest coverage ratio continued to fluctuate throughout the following years, with periods of improvement and decline. Notable increases were observed in some quarters, such as on June 30, 2021 (79.57), September 30, 2022 (117.47), and March 31, 2024 (85.55), suggesting better financial performance and enhanced ability to cover interest payments during those periods.
Conversely, there were also periods of lower interest coverage, such as on March 31, 2021 (13.12), indicating potential challenges in meeting interest obligations. It is essential for investors and creditors to closely monitor Innospec Inc's interest coverage ratio to assess its financial health and sustainability in managing its debt effectively.