Resideo Technologies Inc (REZI)

Solvency ratios

	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	Sep 30, 2019	Jun 30, 2019
Debt-to-assets ratio	0.21	0.22	0.21	0.22	0.22	0.22	0.22	0.23	0.21	0.21	0.21	0.21	0.21	0.22	0.22	0.22	0.23	0.23	0.23	0.23
Debt-to-capital ratio	0.34	0.35	0.34	0.35	0.36	0.37	0.37	0.37	0.35	0.36	0.36	0.37	0.37	0.42	0.43	0.43	0.42	0.43	0.42	0.42
Debt-to-equity ratio	0.51	0.53	0.52	0.54	0.56	0.59	0.59	0.60	0.54	0.57	0.56	0.58	0.58	0.71	0.76	0.76	0.72	0.74	0.73	0.74
Financial leverage ratio	2.42	2.44	2.44	2.46	2.53	2.61	2.64	2.65	2.60	2.70	2.72	2.74	2.81	3.28	3.46	3.48	3.20	3.26	3.24	3.23

Resideo Technologies Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations and the level of financial risk it carries. Looking at the trend over the provided quarters:

1. Debt-to-assets ratio has remained relatively stable around 0.32 to 0.35, indicating that the company finances its assets primarily through debt, with around 32% to 35% of its assets funded by debt over the period.

2. Debt-to-capital ratio has also shown stability around 0.44 to 0.48. This ratio reflects the proportion of company funding that comes from debt compared to equity and reserves, indicating that Resideo Technologies Inc relies more on debt financing than on equity financing.

3. Debt-to-equity ratio has displayed a decreasing trend from 0.78 to 0.91. This ratio signifies the amount of debt used to finance the company relative to its shareholders' equity, showing a decrease in financial risk as the ratio declines. However, the ratio is still relatively high, indicating a significant reliance on debt for financing.

4. Financial leverage ratio has shown a decreasing trend from 2.42 to 2.65. This ratio measures the company's overall debt burden relative to its equity, with lower values suggesting lower financial risk and a higher capacity to cover interest payments.

Overall, Resideo Technologies Inc's solvency ratios indicate a consistent reliance on debt financing to support its operations, with a gradual decrease in overall financial leverage and risk over the provided quarters. However, the company still carries a significant amount of debt compared to equity, highlighting the importance of monitoring and managing its debt levels effectively.

Coverage ratios

	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	Sep 30, 2019	Jun 30, 2019
Interest coverage	8.29	7.22	7.35	7.57	8.38	9.82	10.40	9.72	8.35	7.82	7.28	4.37	2.60	0.91	-0.16	0.45	2.03	2.72	2.69

The interest coverage ratio for Resideo Technologies Inc has shown a decreasing trend from Q1 2022 to Q4 2023. The ratio decreased from 13.07 in Q1 2022 to 9.06 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has declined over the period. Despite the decrease, the interest coverage ratio remains above 1, which generally suggests that the company is able to meet its interest obligations comfortably. However, investors and creditors may still want to monitor this trend closely to ensure the company's long-term financial health and stability.