Resideo Technologies Inc (REZI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.48 | 2.42 | 2.53 | 2.60 | 2.81 |
Resideo Technologies Inc demonstrates a strong financial position in terms of solvency ratios. The company has consistently maintained a debt-to-assets ratio of 0.00 from 2020 to 2024, indicating that it has no debt relative to its total assets.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained at 0.00 during the same period, highlighting the absence of debt concerning the company's capital structure and equity base.
The financial leverage ratio decreased steadily from 2.81 in 2020 to 2.48 in 2024, suggesting that the company has been reducing its reliance on debt to finance its operations over the years. This decline indicates improved financial stability and decreased risk associated with debt obligations.
Overall, based on the solvency ratios, Resideo Technologies Inc appears to have a robust financial position with a low level of debt and a healthy capital structure, which is crucial for long-term sustainability and growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.73 | 6.46 | 11.81 | 11.85 | 2.60 |
Based on the data provided for Resideo Technologies Inc, the interest coverage ratio has exhibited fluctuations over the years. In December 2020, the interest coverage ratio was 2.60, which indicates that the company's operating income was sufficient to cover its interest expenses 2.60 times over.
Subsequently, there was a substantial improvement in the ratio by December 31, 2021, reaching 11.85, showing a significant increase in the company's ability to cover interest payments from its operating earnings. This positive trend continued in December 2022, with a slightly lower ratio of 11.81, still reflecting a robust ability to meet interest obligations comfortably.
In December 2023, there was a notable decrease in the interest coverage ratio to 6.46, suggesting a slight reduction in the company's ability to cover interest expenses from its operating income compared to the previous year. This decline could be an indication of increased interest expenses relative to operating earnings during that period.
By December 31, 2024, the interest coverage ratio further decreased to 3.73, marking a continued downward trend in the company's ability to cover interest charges. This reduction could raise concerns about the sustainability of the company's debt servicing capabilities based on its operating performance.
In conclusion, while Resideo Technologies Inc showed fluctuations in its interest coverage ratio over the years, it experienced a significant improvement followed by a subsequent decline. Investors and stakeholders may want to monitor this ratio closely to assess the company's ability to meet its interest obligations efficiently.