National Presto Industries Inc (NPK)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.24 | 1.18 | 1.18 | 1.16 | 1.11 |
National Presto Industries Inc has consistently maintained a debt-free capital structure over the past five years, as indicated by the consistent trend of zero values for the debt-to-assets, debt-to-capital, and debt-to-equity ratios. This implies that the company relies solely on equity financing to support its operations and expansion activities.
However, the financial leverage ratio has been gradually increasing over the years, reaching 1.24 at the end of 2023. This indicates an increase in the proportion of assets financed by equity compared to previous years. While a higher financial leverage ratio can potentially signal improved returns on equity, it also indicates a higher level of financial risk due to the increased reliance on debt financing.
Overall, National Presto Industries Inc's solvency ratios suggest a strong financial position with no debt obligations and a growing reliance on equity financing to support its operations. The increasing financial leverage ratio should be closely monitored to ensure that the company maintains a healthy balance between debt and equity to support its long-term sustainability and growth.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 2.71 | 12.36 | 14.82 | 6.10 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income.
In the case of National Presto Industries Inc, the interest coverage ratios have fluctuated over the years. The trend indicates that the company's ability to cover its interest expenses improved from 2019 to 2021, with significant ratios of 14.82 and 12.36 respectively. However, in the most recent years, the interest coverage ratio has declined, indicating a relative decrease in the company's ability to cover interest expenses.
The absence of data for the interest coverage ratio for the most recent year, 2023, limits a detailed analysis of the current situation. It would be important to examine the reasons behind the decline observed in recent years and assess the impact of this trend on the company's overall financial health and leverage position. Further investigation into the company's financial performance and debt structure would provide more insights into its ability to meet financial obligations in the future.