ITT Inc (ITT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.05 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.08 | 0.00 | 0.00 | 0.00 | 0.01 |
| Debt-to-equity ratio | 0.08 | 0.00 | 0.00 | 0.00 | 0.01 |
| Financial leverage ratio | 1.71 | 1.56 | 1.68 | 1.60 | 2.01 |
ITT Inc's solvency ratios show a consistent trend of low debt levels relative to its assets, capital, and equity over the years. The Debt-to-assets ratio has remained at 0.00 from 2020 to 2023, with a slight increase to 0.05 in 2024, indicating a very low level of debt in relation to the company's total assets.
Similarly, the Debt-to-capital and Debt-to-equity ratios have also maintained low levels of debt throughout the period, with the Debt-to-capital ratio at 0.01 in 2020 and declining to 0.00 from 2021 to 2023 before rising to 0.08 in 2024. The Debt-to-equity ratio exhibits a similar pattern, starting at 0.01 in 2020 and remaining at 0.00 from 2021 to 2023 until reaching 0.08 in 2024. These ratios indicate that the company has minimal debt in relation to its capital and equity, reflecting a strong financial position.
Furthermore, the Financial leverage ratio decreased from 2.01 in 2020 to 1.56 in 2023 before slightly increasing to 1.71 in 2024. This ratio measures the company's ability to meet its financial obligations and shows a decreasing trend, indicating decreasing financial risk and reliance on debt financing.
Overall, ITT Inc's solvency ratios suggest a conservative approach to debt management, with a strong financial position and low risk of default.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 18.47 | 50.79 | 73.12 | 458.45 | 2.08 |
ITT Inc's interest coverage ratio has seen significant fluctuations over the past five years. In December 2020, the interest coverage ratio stood at 2.08, indicating that the company's operating income was able to cover its interest expenses just over twice.
By December 2021, there was a remarkable improvement in interest coverage, with the ratio soaring to 458.45. This signifies a substantial increase in the company's ability to cover its interest payments from its operating earnings.
However, in the following years, the interest coverage ratio decreased but remained relatively healthy. In December 2022, the ratio was 73.12, indicating that the company could cover its interest expenses over 73 times with its operating income.
The trend continued to decrease in December 2023 and December 2024, with interest coverage ratios of 50.79 and 18.47 respectively. Although the ratios declined, they still suggest that ITT Inc has adequate operating income to cover its interest payments comfortably.
Overall, the variations in ITT Inc's interest coverage ratio over the years reflect fluctuations in the company's profitability and its ability to meet interest obligations from operating earnings.