Itron Inc (ITRI)

The solvency ratios of Itron Inc. demonstrate the company's ability to meet its long-term debt obligations and its overall financial stability.

1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets that are financed by debt. Itron Inc.'s debt-to-assets ratio has been relatively stable, ranging from 0.17 to 0.19 over the past eight quarters. This indicates that the company has maintained a conservative level of debt in relation to its assets.

2. Debt-to-capital ratio: The debt-to-capital ratio reveals the extent to which a company is using debt to fund its operations compared to its total capitalization. Itron Inc.'s debt-to-capital ratio has likewise remained consistent, fluctuating between 0.26 and 0.28. This suggests a prudent capital structure with a balanced mix of debt and equity financing.

3. Debt-to-equity ratio: The debt-to-equity ratio measures the proportion of a company's financing that comes from debt relative to equity. Itron Inc.'s debt-to-equity ratio has shown a slight upward trend, increasing from 0.35 to 0.39 over the past two years. While this may indicate a higher level of leverage, the ratio is still within reasonable limits.

4. Financial leverage ratio: The financial leverage ratio provides insights into the amount of debt used to support a company's operations and growth. Itron Inc.'s financial leverage ratio has fluctuated around 2.00, indicating that the company relies moderately on debt financing.

Overall, based on the solvency ratios provided, Itron Inc. appears to maintain a sound financial position with a conservative debt structure and manageable leverage levels. However, monitoring future trends in these ratios can provide valuable insights into the company's long-term financial health and sustainability.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations. Looking at the data provided for Itron Inc., the interest coverage ratio has seen some fluctuations over the past eight quarters.

In Q4 2023, Itron Inc. did not have data available for interest coverage. However, in Q3 2023, the company had a strong interest coverage ratio of 122.66, indicating a strong ability to cover its interest payments. This was a significant improvement from the previous quarter where the ratio was 37.57.

Moving back further, in Q2 and Q1 2023, the interest coverage ratios were 37.57 and 15.05 respectively, showing a decreasing trend compared to the previous quarters. In Q4 2022, the interest coverage ratio was 5.11, which indicates a decline in Itron Inc.'s ability to cover its interest expenses compared to the previous quarters.

Furthermore, the data shows that in Q3 and Q2 of 2022, Itron Inc. had negative interest coverage ratios (-1.08 and -0.69) which indicates that the company's earnings were not sufficient to cover its interest expenses during those periods. However, there was a slight improvement in Q1 2022, where the ratio was positive at 0.64, although still relatively low.

Overall, the trend in Itron Inc.'s interest coverage ratio indicates some volatility and fluctuations in its ability to cover interest payments over the past eight quarters. It would be essential for the company to monitor and manage its interest expenses effectively to ensure sustainable financial health and stability.