PHINIA Inc. (PHIN)

PHINIA Inc.'s solvency ratios indicate its ability to meet its long-term financial obligations. The Debt-to-assets ratio remained consistently low at 0.00 as of March 31, 2024, and September 30, 2024, indicating that the company financed its assets primarily through equity rather than debt. However, this ratio increased to 0.26 by December 31, 2024, suggesting that a portion of the assets were funded by debt at the end of the year.

Similarly, the Debt-to-capital and Debt-to-equity ratios were also low and steady at 0.00 as of March 31, 2024, and September 30, 2024, reflecting a strong capital structure with minimal reliance on debt. By December 31, 2024, these ratios increased to 0.38 and 0.61, respectively, indicating a higher proportion of debt in the capital and equity structure.

The Financial leverage ratio exhibited a slight increase from 2.15 as of March 31, 2024, to 2.36 by September 30, 2024, and further increased to 2.39 by December 31, 2024. This suggests that the company's dependence on debt financing relative to equity increased over the year, possibly to support growth or expansion initiatives.

Overall, while PHINIA Inc. maintained relatively low debt levels in the earlier periods, there was a noticeable uptick in debt usage by the end of December 31, 2024, which may warrant further examination of its long-term solvency and financial risk management strategies.

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Coverage ratios

Based on the data provided, PHINIA Inc. has reported an interest coverage ratio of "—", indicating that the company did not disclose its interest coverage for the periods ending on March 31, 2024, September 30, 2024, and December 31, 2024. Without this information, it is not possible to assess the company's ability to cover its interest expenses with its earnings. It is essential for investors and creditors to monitor the interest coverage ratio over time to evaluate the company's financial health and risk of default.