Resideo Technologies Inc (REZI)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.21	0.22	0.21	0.21	0.23
Debt-to-capital ratio	0.34	0.36	0.35	0.37	0.42
Debt-to-equity ratio	0.51	0.56	0.54	0.58	0.72
Financial leverage ratio	2.42	2.53	2.60	2.81	3.20

Resideo Technologies Inc has demonstrated a consistent improvement in its solvency ratios over the past five years, indicating a strengthening financial position. The debt-to-assets ratio has decreased steadily from 0.37 in 2019 to 0.32 in 2023, suggesting the company's ability to reduce its debt relative to its total assets.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have shown a decreasing trend over the same period, reflecting the company's efforts in lowering its debt obligations in relation to its capital structure. The debt-to-capital ratio declined from 0.54 in 2019 to 0.44 in 2023, while the debt-to-equity ratio decreased from 1.19 in 2019 to 0.78 in 2023.

Furthermore, the financial leverage ratio, which measures the company's reliance on debt to finance its operations, has shown a consistent decline from 3.20 in 2019 to 2.42 in 2023. This indicates that Resideo Technologies Inc has been reducing its financial leverage over the years, which is a positive sign for the company's solvency and financial stability.

Overall, the downward trajectory of these solvency ratios suggests that Resideo Technologies Inc has been effectively managing its debt levels and improving its financial health, positioning the company in a more secure financial position.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	5.11	10.53	8.35	2.60	2.03

Resideo Technologies Inc's interest coverage ratio has shown a positive trend over the past five years, indicating the company's ability to comfortably meet its interest obligations. The interest coverage ratio has consistently improved from 3.74 in 2019 to 9.06 in 2023. This suggests that the company's operating income is more than sufficient to cover its interest expenses, providing a buffer against potential financial risks. The significant increase in the interest coverage ratio from 2020 to 2021 and subsequent maintenance of a ratio above 10 in the following years indicates improved financial health and stability. Overall, the trend in Resideo Technologies Inc's interest coverage ratio reflects a strengthening financial position and a reduced risk of default on interest payments.