Enpro Industries (NPO)
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 | 1.74 | 1.77 | 1.90 | 2.34 | 1.93 |
Enpro Industries has consistently maintained a strong solvency position, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which remain at 0.00 throughout the years 2020 to 2024. This suggests that the company's level of debt in relation to its total assets, capital, and equity is negligible, highlighting a low financial risk and a healthy balance sheet structure.
Additionally, the financial leverage ratio, which measures the company's reliance on debt financing, has shown some fluctuations over the years but generally remained within a reasonable range. The ratio decreased from 1.93 in 2020 to 1.74 in 2024. This indicates that the company's level of financial leverage has been gradually decreasing, implying a reduced dependency on debt to finance its operations and potentially lower financial risk.
Overall, Enpro Industries' solvency ratios demonstrate a stable and healthy financial position, with minimal debt levels and a moderate trend of reducing financial leverage over the years, potentially enhancing the company's long-term financial stability and resilience.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.31 | 1.84 | 1.79 | 5.04 | -0.62 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses. In the case of Enpro Industries, the interest coverage ratio has shown improvement over the years:
1. In 2020, the interest coverage ratio was negative at -0.62, indicating the company was unable to cover its interest expenses with its operating income.
2. By the end of 2021, the interest coverage ratio improved significantly to 5.04, suggesting that the company's operating income was more than sufficient to cover its interest obligations.
3. However, in 2022 and 2023, the interest coverage ratio decreased to 1.79 and 1.84 respectively, indicating a tighter financial position in terms of the ability to cover interest costs.
4. By the end of 2024, the interest coverage ratio improved again to 3.31, showing some recovery in the company's ability to meet its interest obligations.
Overall, the company's interest coverage ratio has been volatile, possibly indicating fluctuations in operating performance and financial stability. It will be important for Enpro Industries to maintain a healthy interest coverage ratio to ensure financial sustainability and avoid potential financial distress.