RPM International Inc (RPM)
Solvency ratios
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 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 | 2.62 | 3.17 | 3.38 | 3.59 | 4.46 |
RPM International Inc has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 over the past five years. This indicates that the company has not utilized debt as a source of financing relative to its assets, capital, or equity during this period.
However, the financial leverage ratio has decreased from 4.46 in 2020 to 2.62 in 2024. This suggests that the company has been gradually reducing its financial leverage, which measures the extent to which the company relies on debt to finance its operations. A lower financial leverage ratio signifies a lower level of financial risk and indicates that a larger proportion of the company's assets are financed by equity rather than debt.
Overall, based on these solvency ratios, RPM International Inc appears to have a strong financial position with minimal reliance on debt for its operations and a decreasing trend in financial leverage, which is a positive indicator of financial stability and risk management.
Coverage ratios
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.67 | 6.45 | 7.89 | 8.82 | 5.03 |
The interest coverage ratio for RPM International Inc has exhibited an overall improving trend over the past five years. The company's ability to cover its interest expenses has strengthened from 5.03 times in May 2020 to 7.67 times in May 2024. This indicates that the company's operating income is sufficient to service its interest obligations, implying lower financial risk and greater solvency. The consistent increase in interest coverage from 2020 to 2024 showcases improved financial health and stability for RPM International Inc.