MSA Safety (MSA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.93 | 2.24 | 2.57 | 2.87 | 2.31 |
Based on the provided data, MSA Safety maintains strong solvency ratios across the board. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio remain consistently at 0.00 from 2020 to 2024. This indicates that MSA Safety has no debt relative to its total assets, capital, or equity during the period.
Furthermore, the Financial leverage ratio shows a downward trend from 2.31 in 2020 to 1.93 in 2024. A decreasing trend in the financial leverage ratio signifies a decreasing reliance on debt financing to fund operations and growth, which is generally viewed positively by investors and creditors.
Overall, MSA Safety's solvency ratios reflect a strong financial position with little to no debt relative to its assets, capital, or equity, and a decreasing reliance on debt financing over the years. This indicates a healthy and stable financial structure, which may contribute to the company's ability to weather economic uncertainties and pursue strategic initiatives.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.17 | 5.42 | 12.01 | 3.19 | 18.83 |
Based on the data provided, MSA Safety's interest coverage ratio has shown fluctuations over the years. In December 31, 2020, the interest coverage ratio was strong at 18.83, indicating that the company's earnings before interest and taxes were sufficient to cover its interest expenses almost 19 times. However, by December 31, 2021, the ratio decreased significantly to 3.19, suggesting a decline in the company's ability to meet its interest obligations through its operating income.
There was a notable improvement in the interest coverage ratio by December 31, 2022, reaching 12.01, signifying that MSA Safety's earnings had recovered to a level where they could cover its interest payments comfortably. Subsequently, by December 31, 2023, the ratio dropped to 5.42, indicating a slight decrease in the company's ability to cover its interest expenses.
In the most recent period, December 31, 2024, the interest coverage ratio increased to 11.17, demonstrating a better ability to pay interest charges from operating income compared to the previous year.
Overall, MSA Safety's interest coverage ratio has shown variability, with periods of strong coverage followed by periods of lower coverage. It is important for the company to consistently monitor this ratio to ensure it maintains a healthy level of interest coverage, as lower ratios may indicate potential financial risk.