Post Holdings Inc (POST)
Solvency ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.53 | 0.53 | 0.53 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 0.53 | 0.52 | 0.52 | 0.59 | 0.52 | 0.55 | 0.57 | 0.57 | 0.57 | 0.57 | 0.59 | 0.53 |
| Debt-to-capital ratio | 0.62 | 0.62 | 0.62 | 0.62 | 0.61 | 0.61 | 0.63 | 0.63 | 0.65 | 0.64 | 0.64 | 0.74 | 0.70 | 0.71 | 0.71 | 0.70 | 0.71 | 0.70 | 0.71 | 0.66 |
| Debt-to-equity ratio | 1.67 | 1.62 | 1.61 | 1.60 | 1.57 | 1.57 | 1.68 | 1.72 | 1.83 | 1.78 | 1.76 | 2.90 | 2.35 | 2.45 | 2.41 | 2.39 | 2.44 | 2.32 | 2.47 | 1.90 |
| Financial leverage ratio | 3.14 | 3.07 | 3.06 | 3.06 | 3.03 | 3.01 | 3.26 | 3.31 | 3.48 | 3.41 | 3.40 | 4.92 | 4.53 | 4.43 | 4.18 | 4.16 | 4.26 | 4.09 | 4.21 | 3.56 |
The solvency ratios of Post Holdings Inc over the past several quarters show a consistent level of leverage in the company's capital structure. The debt-to-assets ratio has remained relatively stable around 0.52 to 0.53, indicating that approximately 52-53% of the company's assets are financed by debt.
The debt-to-capital ratio has also shown consistency around 0.61 to 0.65, suggesting that debt constitutes approximately 61-65% of the company's total capital structure. This ratio reflects the proportion of the company's capital that is contributed by debt financing.
The debt-to-equity ratio has displayed a slightly increasing trend, ranging from 1.57 to 1.83, indicating that the company's total debt is approximately 1.57-1.83 times its equity. This upward trend may be a cause for concern as it indicates a higher reliance on debt relative to equity as a source of financing.
The financial leverage ratio has exhibited significant fluctuations, varying from 3.01 to 4.92. This ratio reflects the extent to which the company is using debt to finance its operations, with higher values indicating higher financial risk. The ratio peaking at 4.92 in one period suggests a particularly high level of leverage during that time.
Overall, while the debt ratios of Post Holdings Inc show a stable pattern, the increasing trend in the debt-to-equity ratio and the fluctuations in the financial leverage ratio warrant further monitoring to ensure sustainable financing levels and appropriate risk management.
Coverage ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.49 | 2.50 | 2.48 | 2.38 | 2.44 | 2.57 | 2.88 | 4.30 | 3.65 | 3.26 | 2.49 | 1.29 | 1.68 | 1.84 | 2.04 | 0.86 | 0.94 | 0.55 | 0.49 | 1.22 |
The interest coverage ratio of Post Holdings Inc has shown fluctuations over the past few quarters. The ratio measures the company's ability to meet its interest payment obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
In the most recent quarter, as of September 30, 2024, Post Holdings Inc had an interest coverage ratio of 2.49, which suggests that the company earned 2.49 times the amount needed to cover its interest expenses. This ratio has remained relatively stable around 2.5 in the preceding quarters, indicating a consistent ability to meet interest payments.
Looking back further, we observe that the interest coverage ratio has shown variability. The ratio reached its peak of 4.30 in December 2022, indicating a significant improvement in the company's ability to cover interest costs. However, there were periods, such as in December 2020 and September 2020, where the interest coverage ratio was below 1, signaling potential challenges in meeting interest obligations from operating earnings alone.
Overall, Post Holdings Inc's interest coverage ratio has generally been above 1 in recent quarters, indicating that the company has been capable of meeting its interest payment requirements. However, investors and analysts should continue to monitor this ratio to ensure that the company's profitability remains sufficient to cover its interest expenses in the long term.