Newell Brands Inc (NWL)
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 | 4.00 | 4.12 | 3.91 | 3.93 | 3.91 | 4.02 | 3.93 | 3.98 | 3.77 | 3.89 | 3.66 | 3.57 | 3.47 | 3.58 | 3.67 | 3.74 | 3.79 | 3.95 | 4.08 | 4.03 |
Newell Brands Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, all of which have remained at 0.00 across the reported periods. This suggests that the company has very little debt in relation to its total assets, capital, and equity, signifying a low risk of insolvency.
Furthermore, the financial leverage ratio has shown some fluctuations over the years but has generally remained below 4.0. This ratio indicates the proportion of a company's assets that are financed by debt, with a lower ratio indicating lower financial risk. Newell Brands Inc's financial leverage ratio staying below 4.0 demonstrates a moderate level of financial leverage and indicates a conservative approach to managing its capital structure.
Overall, based on the solvency ratios analyzed, Newell Brands Inc appears to have a solid financial foundation and sound financial health, with a prudent approach to managing its debt levels and financial leverage throughout the reported periods.
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 | 0.36 | 0.78 | 0.45 | 0.37 | 0.00 | -1.44 | 0.12 | 0.81 | 2.02 | 4.03 | 4.29 | 4.05 | 3.84 | 3.99 | 4.18 | 3.59 | -2.30 | -2.26 | -5.97 | -5.82 |
The interest coverage ratio for Newell Brands Inc indicates the company's ability to meet its interest obligations using its operating income. A ratio below 1 suggests that the company is not generating enough operating income to cover its interest expenses, which can be a cause for concern as it may indicate financial distress.
Between March 31, 2020, and December 31, 2022, Newell Brands Inc had negative interest coverage ratios, indicating that its operating income was insufficient to cover its interest expenses during these periods.
However, starting from March 31, 2021, the interest coverage ratio improved significantly and remained above 1, reaching a peak of 4.29 on June 30, 2022. This improvement suggests that the company's operating income became more sufficient to cover its interest payments.
From September 30, 2022, to December 31, 2024, the interest coverage ratio fluctuated, ranging from 0.00 to 0.78. These lower ratios indicate that the company may be facing challenges in meeting its interest obligations despite some improvement seen in the earlier periods.
In conclusion, while Newell Brands Inc showed some improvement in its interest coverage ratios from 2021 to 2022, the fluctuating trend from 2022 to 2024 suggests that the company should focus on generating higher operating income to ensure better coverage of its interest expenses in the future.