RPM International Inc (RPM)

The data provided indicates that RPM International Inc. maintains a notable trend in its solvency ratios over the designated periods, characterized by the following observations:

1. Debt-to-Assets Ratio: The ratio consistently remains at 0.00 across all dates from August 2020 through May 2025, suggesting that the company's total liabilities are effectively zero or negligible relative to its total assets during this period. This indicates a strong financial position with no reliance on debt financing in the context of the company's asset structure.

2. Debt-to-Capital Ratio: Similarly, the debt-to-capital ratio is recorded at 0.00 throughout the entire timeline. This implies that the company's total capital comprises entirely of equity or other non-debt sources, with no significant capital derived from debt sources during these dates.

3. Debt-to-Equity Ratio: Consistent with the prior ratios, the debt-to-equity ratio remains at 0.00 throughout the observed periods, indicating the absence of debt obligations relative to shareholders' equity. This reflects a conservative financial leverage stance with none or minimal interest-bearing liabilities.

4. Financial Leverage Ratio: Unlike the other ratios, the financial leverage ratio demonstrates measurable variability over time, indicating a reliance on financial leverage despite the absence of recorded debt ratios. Starting at 3.93 in August 2020, it exhibits a declining trend over subsequent periods, reaching approximately 2.46 by November 2024. The decrease suggests a reduction in the extent of financial leverage used by the company, which could be attributable to changes in the balance sheet structure such as increased equity financing, asset growth without corresponding debt increases, or accounting adjustments.

Summary of the solvent position: The combination of zero debt-related ratios alongside a declining financial leverage ratio indicates that RPM International Inc. operates with minimal to no leverage, positioning it as a company with a conservative capital structure. The declining leverage ratio points toward strengthened equity positions or asset growth not financed through debt, reinforcing the perception of a highly solvent and low-risk financial profile during the specified periods.

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Coverage ratios

Analyzing RPM International Inc.'s interest coverage ratios over the specified periods reveals a generally stable and resilient financial position regarding the company's ability to meet its interest obligations. The ratio fluctuated within a range approximately from 6.37 to 9.01, indicating consistent coverage over the analyzed timeframe.

From August 31, 2020, when the ratio stood at 6.78, there was an upward trend reaching a peak of 8.57 on May 31, 2021, suggesting improved earnings relative to interest expenses during that period. This upward movement aligns with periods of potentially higher operating income or reduced interest costs.

Following this peak, the interest coverage ratio experienced a gradual decline, falling to 6.64 by May 31, 2023. Despite this decline, the ratio remained well above 1.0, signifying continued capacity to service interest obligations comfortably. The lowest point observed was 6.37 on May 31, 2025, which still indicates a robust margin of coverage.

In recent periods, the ratio has shown signs of slight recovery, reaching 8.32 as of August 31, 2024, and continuing upward to 8.99 by November 30, 2024. This suggests an enhancement in earnings before interest and taxes or a reduction in interest expenses.

Overall, RPM International Inc. demonstrates a stable interest coverage profile with ratios consistently well above the critical threshold of 1.0. The fluctuations across periods reflect normal operational and financial variations but maintain an underlying cushion that signifies prudent financial management and a strong capacity to meet interest commitments.