Myers Industries Inc (MYE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.17 | 0.19 | 0.09 | 0.22 |
| Debt-to-capital ratio | 0.10 | 0.27 | 0.30 | 0.17 | 0.32 |
| Debt-to-equity ratio | 0.11 | 0.37 | 0.43 | 0.20 | 0.46 |
| Financial leverage ratio | 1.85 | 2.12 | 2.31 | 2.12 | 2.12 |
Solvency ratios provide insight into a company's ability to meet its long-term debt obligations. Looking at the solvency ratios of Myers Industries Inc. from 2019 to 2023, we observe a favorable trend indicating improved financial health and decreased reliance on debt financing.
The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Myers Industries' debt-to-assets ratio decreased from 0.22 in 2019 to 0.12 in 2023, indicating that only 12% of the company's assets were financed by debt at the end of 2023, down from 22% in 2019. This suggests a reduced risk associated with the company's debt obligations.
The debt-to-capital ratio reflects the proportion of a company's capital that comes from debt. Myers Industries' debt-to-capital ratio declined from 0.32 in 2019 to 0.19 in 2023, showcasing a decreasing reliance on debt for capital funding and a strengthening financial position.
The debt-to-equity ratio compares a company's total debt to its shareholders' equity. The decreasing trend in Myers Industries' debt-to-equity ratio, from 0.46 in 2019 to 0.23 in 2023, indicates a lower level of financial risk as a smaller portion of the company's assets is financed by debt relative to shareholders' equity.
The financial leverage ratio, which measures the extent of a company's financing through debt, decreased from 2.12 in 2019 to 1.85 in 2023. This decrease reflects the company's reduced reliance on debt to finance its operations and investment, resulting in a lower financial risk profile and improved solvency.
Overall, the declining trend in Myers Industries' solvency ratios from 2019 to 2023 suggests an improving financial health, reduced leverage, and a stronger ability to meet its long-term debt obligations, signaling positive developments in the company's financial stability and solvency.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 231.33 | 190.34 | 106.48 | 10.98 | 7.81 |
Myers Industries Inc.'s interest coverage ratio has shown fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
Looking at the trend, the interest coverage ratio was relatively stable between 2019 and 2021, ranging from 9.35 to 11.39. However, in 2022 and 2023, there was a notable increase in the interest coverage ratio to 14.64 and 11.37, respectively.
A higher interest coverage ratio indicates that the company is more capable of servicing its interest obligations from its operating income. This can be a positive signal to investors and creditors, as it suggests a lower risk of default due to insufficient earnings to cover interest expenses.
Overall, the improving trend in Myers Industries Inc.'s interest coverage ratio over the past two years reflects a strengthening financial position in terms of its ability to meet interest payments, which may indicate improved financial health and stability.