Enpro Industries (NPO)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.74 | 1.74 | 1.76 | 1.79 | 1.77 | 1.78 | 1.86 | 1.86 | 1.90 | 2.13 | 2.21 | 2.31 | 2.34 | 1.89 | 1.90 | 1.92 | 1.93 | 1.90 | 1.90 | 1.90 |
Enpro Industries has consistently maintained a strong solvency position based on the solvency ratios analyzed. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been consistently at 0.00, indicating that the company has no debt relative to its assets, capital, or equity during the period analyzed. This demonstrates that Enpro Industries relies primarily on equity financing to support its operations and growth.
The Financial leverage ratio has shown some variability over the years but has generally remained below 2.5. This suggests that the company's reliance on debt to fund its operations has been relatively moderate and has not posed a significant risk to its financial stability.
Overall, Enpro Industries appears to have a solid financial foundation with low debt levels, indicating a conservative approach to financing its operations. This strong solvency position should provide the company with stability and flexibility to weather economic downturns and pursue future growth opportunities.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.62 | 3.42 | 3.37 | 3.14 | 3.29 | 3.07 | 3.42 | 3.94 | 3.99 | 7.82 | 9.72 | 9.80 | 11.66 | 4.94 | -0.62 | -1.44 | -1.66 | -2.56 | -0.07 | 0.91 |
The interest coverage ratio measures a company's ability to meet interest payments on its debt obligations. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.
Analyzing the interest coverage of Enpro Industries from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. Initially, the interest coverage ratio was below 1, indicating that the company's EBIT was insufficient to cover its interest expenses. This is a concerning sign as it suggests potential financial distress and an increased risk of default.
However, from September 30, 2021, onwards, the interest coverage ratio started to improve significantly, surpassing 1 and even exceeding 10 in some periods. This indicates a positive trend where Enpro Industries generated enough earnings to comfortably cover its interest obligations. A higher interest coverage ratio is generally seen as a healthier financial position, providing creditors with more confidence in the company's ability to meet its debt obligations.
Overall, the improvement in Enpro Industries' interest coverage from negative values to positive and substantial levels in recent periods is a positive indicator of the company's financial health and ability to manage its debt burden effectively. Continued monitoring of the interest coverage ratio will be crucial to ensure the company maintains a sustainable level of debt servicing capability in the future.