National Presto Industries Inc (NPK)
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 | 1.23 | 1.24 | 1.18 | 1.18 | 1.16 |
National Presto Industries Inc has exhibited strong solvency ratios over the past five years. The company's debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently been at 0.00 across all years, indicating that the firm has minimal to no debt relative to its assets, capital, and equity. This signifies a low level of financial risk associated with debt obligations.
Furthermore, the financial leverage ratio has slightly fluctuated over the period, ranging from 1.16 to 1.24. Despite these slight variations, the ratio has generally remained close to 1.20, indicating that the company relies on a minimal amount of leverage in its capital structure.
Overall, the solvency ratios of National Presto Industries Inc suggest a conservative financial stance with a strong ability to meet its financial obligations without relying heavily on debt financing.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 3.29 | 12.36 | 14.82 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). Looking at the data provided for National Presto Industries Inc, we see a trend of declining interest coverage ratio over the years.
In December 31, 2020, the interest coverage ratio was 14.82, indicating that the company earned 14.82 times the amount needed to cover its interest expenses. This suggests a strong ability to meet interest payments.
However, by December 31, 2022, the interest coverage ratio had dropped significantly to 3.29, indicating that the company's ability to cover its interest expenses with earnings had weakened.
Furthermore, the data shows that there is no available information for the interest coverage ratios for December 31, 2023, and December 31, 2024, which raises concerns about the company's financial transparency or performance in those years.
Overall, the declining trend in the interest coverage ratio raises red flags about the company's ability to meet its interest obligations in the future and may indicate a deteriorating financial health. Investors and stakeholders should closely monitor this metric to assess the company's financial stability and risk levels.