RPM International Inc (RPM)
Solvency ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.62 | 2.72 | 2.77 | 2.94 | 3.17 | 3.22 | 3.28 | 3.41 | 3.38 | 3.45 | 3.41 | 3.45 | 3.59 | 3.74 | 3.74 | 3.93 | 4.46 | 4.12 | 3.98 | 4.17 |
RPM International Inc's solvency ratios, specifically the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, have consistently been at 0.00 over the past several reporting periods. This indicates that the company has not had any financial leverage from debt in relation to its assets, capital, or equity during these periods.
However, the financial leverage ratio has fluctuated over the same timeframe, ranging from 2.62 to 4.46. This ratio measures the company's reliance on debt to finance its operations and growth. The increasing trend in the financial leverage ratio suggests that RPM International Inc has been taking on more debt relative to its equity, which could indicate an increased risk of financial distress in the future.
Overall, while the absence of debt in the traditional solvency ratios appears favorable, the rising financial leverage ratio warrants further scrutiny to assess the potential impact on the company's long-term financial health and stability.
Coverage ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.67 | 7.07 | 6.63 | 6.58 | 6.45 | 7.08 | 7.58 | 7.94 | 7.89 | 7.88 | 8.15 | 8.17 | 8.82 | 8.07 | 7.39 | 6.36 | 5.03 | 5.08 | 4.88 | 4.67 |
The interest coverage ratio for RPM International Inc has shown a generally stable trend over the period analyzed. The company's ability to cover its interest expenses has been relatively strong, with ratios consistently above 5. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations with its operating earnings.
In recent quarters, the interest coverage ratio has ranged from a low of 4.67 to a high of 8.82, with fluctuations possibly influenced by changes in the company's operating performance or debt levels. Despite some variability, the company's interest coverage remains comfortably above the 5 threshold, suggesting a healthy financial position with sufficient earnings to cover interest costs.
Overall, RPM International Inc's interest coverage ratio indicates that the company has been effectively managing its interest payment obligations, which is a positive signal for creditors and investors.