Quanex Building Products (NX)
Solvency ratios
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 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 | 2.30 | 1.47 | 1.48 | 1.47 | 1.52 | 1.61 | 1.67 | 1.74 | 1.56 | 1.65 | 1.70 | 1.69 | 1.71 | 1.77 | 1.81 | 1.84 | 1.94 | 2.02 | 2.20 | 2.02 |
Based on the provided solvency ratios for Quanex Building Products, it is clear that the company has consistently maintained a low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across all the reported periods. This indicates that Quanex Building Products relies minimally on debt financing to support its operations and expansion.
However, the financial leverage ratio has fluctuated over the periods, ranging from 1.47 to 2.30. The upward trend in the financial leverage ratio from 1.47 to 2.30 suggests that the company has increased its reliance on debt to finance its assets and operations. A higher financial leverage ratio indicates a higher level of financial risk associated with the company.
Overall, while Quanex Building Products has effectively managed its debt levels in terms of traditional solvency ratios, the increasing trend in the financial leverage ratio warrants monitoring to ensure the company maintains a healthy balance between debt and equity financing to support its growth and financial stability.
Coverage ratios
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.04 | 21.50 | 17.85 | 15.77 | 12.93 | 13.80 | 16.35 | 23.93 | 43.89 | 46.35 | 43.35 | 36.83 | 32.66 | 28.54 | 22.35 | 14.85 | 10.59 | 0.55 | 0.84 | -2.52 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a better ability to cover interest costs. Quanex Building Products' interest coverage has varied significantly over the past few quarters.
The interest coverage ratio has shown a general upward trend from January 2020 to October 2022, indicating improving ability to cover interest costs. The ratio peaked at 46.35 in July 2022, reflecting a strong ability to meet interest obligations.
However, from January 2023 to October 2024, the interest coverage ratio experienced fluctuations, with values ranging from 3.04 to 21.50. This suggests a less consistent ability to cover interest expenses during this period.
Overall, Quanex Building Products has demonstrated variable performance in its ability to cover interest expenses in recent quarters. Further analysis of the company's financial health and operational efficiency may be warranted to understand the factors contributing to these fluctuations in interest coverage.