Itron Inc (ITRI)

Itron Inc.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations. Over the past five years, there has been a notable improvement in the company's solvency position as indicated by decreasing debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios.

The debt-to-assets ratio has decreased from 0.34 in 2019 to 0.17 in 2023, reflecting a lower proportion of debt relative to the company's total assets. This trend indicates that Itron Inc. has been successful in reducing its reliance on debt to finance its operations and investments.

Similarly, the debt-to-capital ratio has improved from 0.55 in 2019 to 0.26 in 2023, suggesting a more favorable capital structure with a lower proportion of debt in the company's overall capitalization. The decreasing trend in this ratio indicates a reduced financial risk and greater financial stability for the company.

The debt-to-equity ratio has shown a significant decline from 1.20 in 2019 to 0.35 in 2023, indicating a stronger equity position relative to debt. This improvement implies that Itron Inc. has reduced its financial leverage and enhanced its ability to weather economic downturns or industry challenges.

Moreover, the financial leverage ratio has decreased steadily from 3.49 in 2019 to 1.99 in 2023, reflecting a lower level of financial risk and a more conservative capital structure. A lower financial leverage ratio signifies that the company is relying less on debt to finance its assets and operations.

Overall, the improving trend in Itron Inc.'s solvency ratios demonstrates the company's efforts in strengthening its financial position, reducing debt levels, and enhancing its long-term financial sustainability.

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Coverage ratios

Over the past five years, Itron Inc.'s interest coverage ratio has shown some fluctuations. In 2023, the interest coverage ratio is not available in the data provided.

In 2022, the company's interest coverage ratio was at a solid 5.11, indicating that Itron had more than enough earnings to cover its interest expenses, showing a strong financial position.

However, in 2021, the interest coverage ratio decreased to 1.46, which could be a cause for concern as it suggests that the company's earnings were just sufficient to cover its interest payments.

The trend improved in 2022 and 2019, where the interest coverage ratio increased to 2.11 and 2.75, respectively. These values indicate a better ability to meet interest obligations compared to 2021 but still below the 2022 levels.

Overall, investors and creditors may view the fluctuating interest coverage ratio as a sign of varying financial performance and may want to monitor Itron's ability to generate enough earnings to cover its interest expenses consistently in the future.