Gibraltar Industries Inc (ROCK)
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 | 0.07 | 0.02 | 0.07 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.10 | 0.03 | 0.10 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.11 | 0.03 | 0.12 |
| Financial leverage ratio | 1.35 | 1.37 | 1.47 | 1.47 | 1.63 |
Gibraltar Industries Inc has shown a consistent improvement in its solvency ratios over the years. The debt-to-assets ratio has decreased from 0.07 in 2020 to 0.00 in 2024, indicating a reduction in the company's reliance on debt to finance its assets. Similarly, the debt-to-capital ratio has also declined from 0.10 in 2020 to 0.00 in 2024, suggesting a lower proportion of debt in the company's capital structure.
The debt-to-equity ratio has exhibited a similar trend, decreasing from 0.12 in 2020 to 0.00 in 2024, indicating a strengthening of the company's financial position in relation to its shareholders' equity. Additionally, the financial leverage ratio has decreased from 1.63 in 2020 to 1.35 in 2024, reflecting a lower level of financial risk and a more conservative capital structure.
Overall, the solvency ratios of Gibraltar Industries Inc demonstrate a positive trend towards a stronger financial position with reduced debt levels and improved leverage ratios over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 23.18 | 50.21 | 32.15 | 59.18 | 152.48 |
Interest coverage is a significant financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. In the case of Gibraltar Industries Inc, the interest coverage ratio has shown some fluctuations over the years.
As of December 31, 2020, the interest coverage ratio was 152.48, indicating that the company's operating income was sufficient to cover its interest expenses by a substantial margin. This high ratio suggests that Gibraltar Industries had a strong ability to meet its interest obligations.
By December 31, 2021, the interest coverage ratio declined to 59.18, signaling a decrease in the company's ability to cover its interest expenses. Despite this drop, the ratio was still above 1, indicating that Gibraltar Industries generated enough operating income to meet its interest obligations.
Further, by December 31, 2022, the interest coverage ratio fell to 32.15, continuing the downward trend observed in the previous year. Although the ratio decreased, it remained above 1, suggesting that Gibraltar Industries could still meet its interest payments using its operating income.
Subsequently, on December 31, 2023, the interest coverage ratio improved to 50.21, showing some recovery in the company's ability to cover its interest expenses compared to the previous year. Despite this improvement, the ratio remained below the levels seen in the earlier years.
Finally, as of December 31, 2024, the interest coverage ratio declined further to 23.18, indicating a significant decrease in the company's ability to meet its interest obligations. This reduction raises concerns about Gibraltar Industries' capacity to cover its interest expenses with its current level of operating income.
Overall, the fluctuations in Gibraltar Industries Inc's interest coverage ratio highlight the importance of monitoring the company's financial performance and ability to manage its debt obligations effectively. An interest coverage ratio above 1 is generally considered healthy, but sustained declines may indicate financial stress and necessitate further analysis and proactive management.