Post Holdings Inc (POST)

The solvency ratios of Post Holdings Inc indicate the company's ability to meet its long-term financial obligations and the extent to which its operations are funded by debt.

The debt-to-assets ratio has shown a decreasing trend over the past five years, which suggests that the company has been successful in reducing its reliance on debt to finance its assets. The ratio was 0.52 as of September 30, 2023, indicating that 52% of the company's assets are financed by debt.

Similarly, the debt-to-capital ratio has also exhibited a declining pattern, reaching 0.61 in 2023. This indicates that 61% of the company's capital is derived from debt, a decrease from previous years.

The debt-to-equity ratio portrays the company's reliance on debt financing relative to shareholders' equity. The decreasing trend of this ratio signifies a reduction in the company's leverage over the years. As of September 30, 2023, the debt-to-equity ratio stood at 1.57, implying that for every $1 of equity, the company has $1.57 in debt.

Furthermore, the financial leverage ratio, which measures the extent to which the company utilizes debt in its capital structure, has also demonstrated a downwards trajectory. The ratio was 3.03 in 2023, suggesting that the company's assets are funded at a lower proportion by debt compared to previous years.

Overall, these solvency ratios reflect a positive trend, indicating that Post Holdings Inc has been effectively managing its debt levels and improving its financial structure in recent years. This could enhance the company's financial stability and long-term sustainability.

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Coverage ratios

The interest coverage ratio for Post Holdings Inc has shown some variability over the past five years. In 2023, the interest coverage ratio improved to 2.30 from 1.10 in 2022, indicating the company's enhanced ability to meet its interest obligations from its operating income. This suggests a stronger financial position compared to the prior year. However, compared to 2019, when the interest coverage was 2.11, the ratio has shown some fluctuation. It is important to further analyze the underlying factors contributing to this trend, such as changes in earnings and interest expenses, to gain a deeper understanding of the company's financial performance.