Itron Inc (ITRI)

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 0.36 0.37 0.38 0.17 0.17 0.18 0.18 0.19 0.19 0.20 0.20 0.19 0.19 0.19 0.19 0.17 0.35 0.44 0.44 0.43
Debt-to-capital ratio 0.47 0.48 0.50 0.25 0.26 0.27 0.27 0.28 0.28 0.29 0.29 0.28 0.29 0.28 0.29 0.29 0.53 0.63 0.63 0.63
Debt-to-equity ratio 0.89 0.92 1.00 0.33 0.35 0.37 0.38 0.39 0.39 0.41 0.41 0.39 0.40 0.38 0.41 0.41 1.11 1.70 1.70 1.72
Financial leverage ratio 2.45 2.50 2.65 1.96 1.99 2.03 2.07 2.09 2.04 2.12 2.08 2.09 2.14 2.06 2.12 2.45 3.19 3.91 3.87 3.99

Itron Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio steadily decreased from 0.43 in March 2020 to 0.17 in March 2021, indicating a stronger ability to cover its liabilities with its assets. However, the ratio slightly increased to 0.18 by June 2024.

The Debt-to-capital ratio decreased from 0.63 in March 2020 to 0.25 in March 2024, reflecting a decreasing reliance on debt to finance its operations. Despite a slight increase to 0.38 in June 2024, the trend overall shows an improvement in the company's capital structure and financial health.

The Debt-to-equity ratio declined significantly from 1.72 in March 2020 to 0.33 in March 2024, highlighting a substantial decrease in the company's debt relative to its equity. This suggests a lower financial risk and better stability in the long run. However, the ratio slightly increased to 1.00 in June 2024, indicating a potential increase in leverage.

The Financial leverage ratio decreased consistently from 3.99 in March 2020 to 1.96 in March 2024, demonstrating a reduction in the company's reliance on debt financing. This implies improved financial stability and a stronger capital structure. The ratio slightly increased to 2.65 in June 2024, indicating a moderate uptick in leverage.

Overall, Itron Inc's solvency ratios reflect a positive trend towards a healthier financial position, with decreasing debt levels, improved capital structure, and lower financial leverage over the analyzed period.

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 52.04 23.48 28.79 25.81 16.09 11.65 5.95 -3.53 -1.37 -20.19 -18.19 -6.05 -3.43 1.12 0.30 -0.31 -0.31 -0.39 0.91 2.63

The interest coverage ratio measures a company's ability to meet its interest obligations on debt using its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Analyzing Itron Inc's interest coverage ratio over the periods provided, we observe fluctuations in the ratio.

In the earlier periods, from March 2020 to December 2021, the interest coverage ratio was negative, indicating that Itron's operating income was insufficient to cover its interest expenses during these periods. This could be a cause for concern as it suggests potential difficulties in meeting interest payments from operating earnings alone.

However, starting from March 2023, the interest coverage ratio turned positive and showed a significant improvement, reaching its peak at the end of December 2024. This improvement suggests that Itron's operating income has strengthened sufficiently to cover its interest obligations more comfortably.

Overall, the trend in the interest coverage ratio for Itron Inc indicates a recent positive turnaround in the company's ability to cover its interest expenses, reflecting a potentially healthier financial position. It is essential for the company to maintain this positive trend to ensure the sustainability of its debt repayment obligations.