John Bean Technologies Corporation (JBT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.37 | 0.31 | 0.29 | 0.36 |
| Debt-to-capital ratio | 0.30 | 0.52 | 0.47 | 0.45 | 0.55 |
| Debt-to-equity ratio | 0.43 | 1.08 | 0.90 | 0.82 | 1.23 |
| Financial leverage ratio | 1.82 | 2.92 | 2.85 | 2.83 | 3.36 |
John Bean Technologies Corp's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend from 0.37 in 2019 to 0.24 in 2023, reflecting a lower reliance on debt to finance its assets. This implies that a lower proportion of the company's assets are funded by debt, which can be viewed positively in terms of financial stability.
Similarly, the debt-to-capital ratio has also decreased from 0.55 in 2019 to 0.30 in 2023, indicating a reduction in the proportion of capital funded by debt. This ratio demonstrates the company's ability to generate capital through sources other than debt, which is a positive sign for solvency.
The debt-to-equity ratio has shown a significant improvement, declining from 1.23 in 2019 to 0.43 in 2023. This indicates that the company's reliance on equity financing has increased relative to debt financing, which is favorable for long-term financial health.
Lastly, the financial leverage ratio has also decreased steadily from 3.36 in 2019 to 1.82 in 2023. A lower financial leverage ratio implies reduced financial risk and dependence on debt to support the company's operations, signaling improved solvency.
Overall, based on the solvency ratios, John Bean Technologies Corp appears to have strengthened its financial position by reducing its reliance on debt and improving its capital structure over the years, indicating a healthier outlook in terms of meeting its long-term obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 25.94 | 10.33 | 18.55 | 11.47 | 9.86 |
Interest coverage is a key financial ratio that reflects a company's ability to meet its interest obligations with its operating income. John Bean Technologies Corp has shown a fluctuating trend in its interest coverage ratio over the past five years. The ratio has ranged from 10.73 in 2019 to 19.05 in 2021, indicating the company's ability to cover its interest expenses has varied over time.
In 2023, the interest coverage ratio improved to 16.13, compared to the previous year's ratio of 12.35. This suggests that the company's operating income is 16.13 times higher than its interest expenses for the year, indicating a stronger ability to meet its debt obligations. A higher interest coverage ratio is generally viewed positively by investors and creditors as it indicates a lower risk of default on debt payments.
It is essential for stakeholders to monitor the interest coverage ratio closely as a declining ratio could signal potential financial distress, while an increasing ratio reflects improved financial health. Overall, the trend in John Bean Technologies Corp's interest coverage ratio highlights the company's ability to manage its debt obligations, but continuous monitoring is necessary to ensure financial stability.