ITT Inc (ITT)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.56 | 1.58 | 1.66 | 1.64 | 1.68 | 1.79 | 1.84 | 1.79 | 1.60 | 1.61 | 1.62 | 1.98 | 2.01 | 2.07 | 2.02 | 2.13 | 1.98 | 2.03 | 2.09 | 2.11 |
ITT Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.
- The debt-to-assets ratio has been decreasing over the quarters, from 0.12 in Q4 2022 to 0.05 in Q4 2023, suggesting a decreasing reliance on debt to finance its assets. This is a positive trend as lower debt-to-assets ratio indicates less financial risk.
- Similarly, the debt-to-capital ratio and debt-to-equity ratio have also been declining, indicating a decreasing proportion of debt in the company's capital structure. This is a favorable sign as it shows a higher proportion of equity financing which can enhance the company's financial stability.
- The financial leverage ratio has also been decreasing over the quarters, from 1.84 in Q2 2022 to 1.56 in Q4 2023, indicating a declining reliance on debt to finance the company's assets. A lower financial leverage ratio signifies less debt relative to equity, thus reducing financial risk and increasing financial stability.
Overall, the downward trends in these solvency ratios suggest that ITT Inc is gradually improving its financial position by reducing its debt levels and enhancing its ability to meet its long-term obligations.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 38.00 | 42.45 | 38.24 | 49.28 | 76.72 | 126.53 | 256.19 | 106.30 | 88.47 | 101.93 | 63.31 | 47.31 | 55.24 | 26.25 | 74.41 | 138.74 | 137.13 | 110.47 | 98.21 | 75.46 |
In analyzing ITT Inc's interest coverage over the past eight quarters, it is evident that the company has maintained a strong ability to cover its interest expenses. The interest coverage ratio has shown a consistently high performance, ranging from a low of 50.78 in Q4 2023 to a high of 85.88 in Q3 2023. This indicates that ITT Inc's earnings before interest and taxes (EBIT) are sufficient to cover its interest payments multiple times over.
The trend over the past quarters shows that ITT Inc's interest coverage ratio has been robust and relatively stable, with ratios consistently well above 1. This demonstrates the company's financial strength and ability to meet its interest obligations comfortably. Additionally, the increasing trend in the interest coverage ratio from Q4 2022 to Q3 2023 indicates improving financial health and profitability.
It is worth noting that there is missing data for Q2 and Q1 of 2022, which limits the complete trend analysis. However, based on the available data points, ITT Inc appears to have a solid financial position and a strong ability to service its debt obligations.