Itron Inc (ITRI)

Based on the provided data, let's analyze the solvency ratios of Itron Inc over the years:

1. Debt-to-Assets Ratio:
- The debt-to-assets ratio decreased from 0.35 in 2020 to 0.19 in both 2021 and 2022, indicating a lower proportion of assets financed by debt. In 2023, the ratio further decreased to 0.17 before slightly increasing to 0.36 in 2024. Overall, the company has maintained a relatively stable level of debt relative to its assets.

2. Debt-to-Capital Ratio:
- The debt-to-capital ratio also exhibited a decreasing trend from 2020 to 2023, declining from 0.53 to 0.26. However, there was a slight increase to 0.47 in 2024. This ratio indicates the proportion of the company's capital that is financed by debt, with lower values generally viewed favorably.

3. Debt-to-Equity Ratio:
- The debt-to-equity ratio decreased significantly from 1.11 in 2020 to 0.35 in 2023, before rising to 0.89 in 2024. This ratio shows the level of financial leverage used by the company, and a decreasing trend indicates a lower reliance on debt funding compared to equity.

4. Financial Leverage Ratio:
- The financial leverage ratio declined from 3.19 in 2020 to 1.99 in 2023, suggesting a reduction in the company's reliance on debt to generate returns for shareholders. However, there was a slight increase to 2.45 in 2024, indicating a higher level of financial leverage compared to the previous year.

In summary, Itron Inc has generally improved its solvency position by reducing its debt relative to assets, capital, and equity over the years. However, the slight increase in some ratios in 2024 raises the need for further monitoring to ensure optimal solvency levels.

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Coverage ratios

Based on the interest coverage ratios provided for Itron Inc for the years 2020 to 2024, there is a significant fluctuation in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

In December 31, 2020 and December 31, 2021, the interest coverage ratios were negative, signaling that the company's EBIT was insufficient to cover its interest expenses. This indicates a potential financial risk as the company may struggle to meet its interest obligations from its operating income during those periods.

In December 31, 2022, the interest coverage ratio improved slightly but remained below 1, indicating ongoing challenges in meeting interest payments from operating earnings.

However, there was a notable improvement in December 31, 2023, where the interest coverage ratio surged to 16.09, indicating a significant enhancement in the company's ability to cover its interest expenses with its EBIT. This improvement suggests a positive turn in the company's financial performance and reduced financial risk.

By December 31, 2024, the interest coverage ratio further increased to a high level of 48.12, demonstrating a considerable strengthening of the company's financial position in terms of covering interest costs with operating earnings.

Overall, the fluctuation in Itron Inc's interest coverage ratios over the years highlights varying levels of financial health and risk management. The improvement in the later years indicates progress towards a more stable financial position, but analysts should continue to monitor the company's ability to generate sufficient earnings to cover its interest obligations.