LCI Industries (LCII)

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 0.29 0.30 0.30 0.33 0.34 0.32 0.32 0.35 0.37 0.33 0.34 0.29 0.31 0.29 0.34 0.37 0.33 0.18 0.18 0.21
Debt-to-capital ratio 0.38 0.40 0.40 0.44 0.44 0.42 0.44 0.50 0.53 0.50 0.49 0.43 0.44 0.41 0.45 0.48 0.43 0.25 0.25 0.28
Debt-to-equity ratio 0.62 0.66 0.67 0.78 0.79 0.73 0.79 1.00 1.13 0.98 0.96 0.76 0.79 0.70 0.83 0.93 0.77 0.34 0.33 0.40
Financial leverage ratio 2.18 2.21 2.24 2.36 2.35 2.30 2.50 2.89 3.01 2.99 2.82 2.61 2.53 2.41 2.47 2.54 2.33 1.82 1.77 1.86

The solvency ratios of LCI Industries indicate the company's ability to meet its financial obligations and manage its debt levels effectively.

The debt-to-assets ratio has shown a slight decrease from 0.34 in Q4 2022 to 0.29 in Q4 2023, indicating that the company's debt relative to its total assets has improved over this period.

The debt-to-capital ratio has also demonstrated a decreasing trend from 0.45 in Q4 2022 to 0.38 in Q4 2023, indicating a lower reliance on debt financing in relation to the company's total capital structure.

The debt-to-equity ratio has exhibited a declining trend as well, decreasing from 1.02 in Q1 2022 to 0.63 in Q4 2023, indicating a reduction in the level of debt compared to shareholders' equity in the company.

The financial leverage ratio, which measures the company's use of debt to finance its operations, has generally improved over time, with a decrease from 2.89 in Q1 2022 to 2.18 in Q4 2023, suggesting a lower reliance on debt to generate profits.

Overall, the solvency ratios of LCI Industries have shown improvement, highlighting the company's ability to manage its debt levels efficiently and maintain a healthy balance between debt and equity in its capital structure.

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 3.05 2.49 3.91 9.57 20.06 27.74 30.55 28.46 24.34 25.86 32.91 25.55 16.57 15.01 11.60 17.13 22.76 22.70 22.74 23.81

Based on the data provided for LCI Industries' interest coverage ratio over the past eight quarters, we observe fluctuations in the company's ability to cover its interest expenses.

The interest coverage ratio has varied significantly, ranging from a low of 2.49 in Q3 2023 to a high of 30.55 in Q2 2022. This indicates that LCI Industries' ability to meet its interest obligations has been inconsistent over the recent quarters.

In Q1 2022, the interest coverage ratio was exceptionally high at 28.46, signifying robust earnings in relation to interest expenses. However, this ratio dropped substantially in subsequent quarters, reaching its lowest point in Q3 2023 at 2.49, suggesting a potential strain on the company's ability to cover interest costs with its operating income during that period.

The trend of declining interest coverage ratios from Q2 2022 onwards raises concerns about the company's ability to service its debt obligations adequately. Investors and creditors may view this trend as a sign of heightened financial risk and potential difficulties in meeting interest payments. It is essential for LCI Industries to closely monitor its interest coverage ratio and take proactive measures to improve the sustainability of its financial position.