Gibraltar Industries Inc (ROCK)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.07 | 0.02 | 0.07 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.10 | 0.03 | 0.10 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.11 | 0.03 | 0.12 | 0.00 |
| Financial leverage ratio | 1.37 | 1.47 | 1.47 | 1.63 | 1.46 |
Gibraltar Industries Inc. has displayed consistent strong solvency ratios over the past five years. The debt-to-assets ratio has been kept at very low levels with a notable decline from 0.07 in 2022 to 0.02 in 2021 before rebounding slightly to 0.07 in 2023. This signifies a conservative approach towards utilizing debt in financing its assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also shown a declining trend over the period, indicating a decreasing reliance on debt in funding the company's operations. The debt-to-capital ratio decreased from 0.10 in 2022 to 0.03 in 2021, then increased slightly to 0.10 in 2023. The debt-to-equity ratio followed a similar pattern, dropping from 0.11 in 2022 to 0.03 in 2021 before rising to 0.12 in 2023.
Furthermore, the financial leverage ratio, which measures the extent to which the company utilizes debt in its capital structure, has consistently remained below 2 over the past five years. Although the ratio increased in 2020 and 2023 compared to the previous years, it remains relatively stable and within reasonable limits.
Overall, the solvency ratios of Gibraltar Industries Inc. reflect a financially sound position with a prudent level of debt utilization, indicating a strong ability to meet its financial obligations and a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 50.21 | 32.15 | 59.18 | 152.48 | 36.65 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of fulfilling its interest payments.
Analysis of Gibraltar Industries Inc.'s interest coverage ratio over the past five years reveals a fluctuating trend. In 2023, the interest coverage ratio stands at 51.47, demonstrating a strong ability to cover interest expenses with operating income. This represents an improvement from the previous year, where the ratio was 32.15.
Looking back further, the interest coverage ratio in 2021 was 64.24, also signaling a healthy ability to pay interest obligations. The ratio experienced a substantial increase in 2020, reaching 152.48, indicating a significant improvement in the company's ability to cover interest payments compared to the previous year. In 2019, the interest coverage ratio was 39.84, which although lower compared to the subsequent years, still showed a reasonable capacity to meet interest expenses.
Overall, Gibraltar Industries Inc. has shown varying levels of interest coverage over the past five years, with some years indicating stronger ability to cover interest payments than others. It is crucial for investors and stakeholders to monitor this ratio as it provides insights into the company's financial health and ability to manage its debt obligations.