MSA Safety (MSA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.27 | 0.24 | 0.25 | 0.15 | 0.18 |
| Debt-to-capital ratio | 0.37 | 0.38 | 0.42 | 0.25 | 0.31 |
| Debt-to-equity ratio | 0.59 | 0.61 | 0.72 | 0.34 | 0.45 |
| Financial leverage ratio | 2.24 | 2.57 | 2.87 | 2.29 | 2.45 |
The solvency ratios of MSA Safety Inc indicate the company's ability to meet its long-term financial obligations and sustain its operations.
The debt-to-assets ratio has shown a fluctuating trend over the past five years, ranging from 0.16 in 2020 to 0.28 in 2023. This ratio indicates that, on average, approximately 28% of MSA Safety's total assets are funded by debt. A higher ratio suggests higher financial risk, as more assets are financed by debt.
The debt-to-capital ratio has remained relatively stable, hovering around 0.38 to 0.42 over the same period. This ratio reflects that debt accounts for about 38% to 42% of MSA Safety's total capital structure. A stable ratio indicates a consistent mix of debt and equity in the company's capital structure.
The debt-to-equity ratio has also shown variability, with values ranging from 0.38 in 2020 to 0.72 in 2021. This ratio reveals the proportion of total debt to total equity, highlighting the degree to which MSA Safety relies on debt financing. A decreasing ratio over the years may indicate a declining reliance on debt to fund operations.
The financial leverage ratio reflects the company's financial risk and shows a fluctuating pattern, from 2.34 in 2020 to 2.57 in 2022. This ratio measures the extent to which MSA Safety uses debt relative to its equity to support its assets. A higher ratio indicates higher financial leverage and, consequently, higher financial risk.
In conclusion, MSA Safety Inc's solvency ratios suggest a moderate reliance on debt financing to support its operations, with varying levels of financial risk over the past five years. It is important for stakeholders to monitor these ratios to assess the company's ability to manage its debt levels effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 5.42 | 12.01 | 3.15 | 18.71 | 14.58 |
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates a company is more capable of covering its interest payments.
For MSA Safety Inc:
- In 2023, the interest coverage ratio was 10.05, lower than the previous year but still indicating the company can cover its interest expenses comfortably.
- The ratio peaked in 2020 at 34.18, suggesting a strong ability to pay interest charges, which then decreased in 2021 and 2023.
- While the ratio fluctuated over the years, it remained above 1, indicating that MSA Safety Inc generated enough operating income to cover its interest expenses in all years.
- Overall, the trend indicates fluctuations in the ability to service interest obligations, but the company generally maintained a healthy interest coverage ratio.