LCI Industries (LCII)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.09 | 2.13 | 2.16 | 2.20 | 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 |
Based on the provided data for LCI Industries, the solvency ratios indicate a strong financial position in terms of the company's ability to meet its long-term obligations. Here is a detailed analysis of the solvency ratios:
1. Debt-to-Assets Ratio: The debt-to-assets ratio for LCI Industries remained consistently at 0.00 across all reported quarters. This indicates that the company has not utilized any debt to finance its assets, implying a low-risk financial structure.
2. Debt-to-Capital Ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio also remained at 0.00 for all quarters. This suggests that the company's capital structure is primarily composed of equity rather than debt, further highlighting a conservative approach to financial leverage.
3. Debt-to-Equity Ratio: The debt-to-equity ratio, being equivalently 0.00 for all periods, reaffirms the absence of debt in the company's capital mix. This ratio implies that the company's operations are not heavily reliant on external borrowing and hence, signifies a lower risk of financial distress.
4. Financial Leverage Ratio: The financial leverage ratio, which measures the extent of a company's financing through debt, fluctuated over the quarters but generally stayed within a moderate range. The ratio ranged from 2.09 to 3.01, indicating that the company has maintained a balanced approach towards using debt to finance its operations.
Overall, the consistent low values of the solvency ratios - debt-to-assets, debt-to-capital, and debt-to-equity ratios - coupled with the moderate financial leverage ratio, reflect that LCI Industries has a strong solvency position with a minimal reliance on debt for its long-term financial stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.13 | 4.54 | 5.30 | 4.09 | 3.05 | 2.49 | 3.91 | 8.56 | 18.90 | 21.94 | 24.18 | 22.82 | 17.48 | 25.86 | 32.91 | 25.55 | 16.57 | 15.01 | 11.60 | 17.13 |
The interest coverage ratio reflects LCI Industries' ability to meet its interest obligations with its operating income. Looking at the trend in LCI's interest coverage ratio from March 31, 2020, to December 31, 2024, there are fluctuations observed. At the beginning of the period, the interest coverage ratio was solid at around 17.13, indicating a comfortable ability to cover interest expenses.
In the subsequent quarters, the interest coverage ratio varied, reaching a peak of 32.91 on June 30, 2021, reflecting a significant improvement in LCI's ability to cover interest costs. However, the ratio declined in the following quarters, hovering around the mid-20s, indicating a slightly reduced capacity to cover interest expenses compared to the peak levels.
By March 31, 2023, the interest coverage ratio dropped significantly to 8.56 and continued to decrease in the subsequent quarters, hitting a low of 2.49 by September 30, 2023. These declining trends may suggest potential concerns about LCI's ability to manage its interest payments effectively.
From December 31, 2023, to December 31, 2024, there was a slight recovery in the interest coverage ratio, stabilizing around 5.13 by the end of 2024. The declining trend followed by a gradual recovery indicates a period of financial challenge for LCI Industries in meeting its interest obligations, with some improvement towards the end of the analyzed period.