Silgan Holdings Inc (SLGN)
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 | 0.00 | 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 | 4.31 | 4.03 | 4.28 | 4.97 | 5.20 |
Silgan Holdings Inc has consistently maintained a strong solvency position over the years, as evidenced by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00 for the periods from December 31, 2020, to December 31, 2024. This indicates that the company has effectively financed its operations without relying heavily on debt.
Furthermore, the financial leverage ratio of Silgan Holdings Inc has shown a decreasing trend from 5.20 in 2020 to 4.31 in 2024. This suggests that the company has been reducing its reliance on debt to finance its operations and has potentially strengthened its capital structure over time.
Overall, based on the solvency ratios analyzed, Silgan Holdings Inc appears to have a sound financial position with low debt levels and improving financial leverage ratios, indicating a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.09 | 2.87 | 5.55 | 5.50 | 5.31 |
Based on the provided data, the interest coverage ratio of Silgan Holdings Inc has been relatively stable from December 31, 2020, to December 31, 2022, with values of 5.31, 5.50, and 5.55 respectively, indicating the company's strong ability to cover its interest expenses with its operating earnings. However, there was a notable decline in the interest coverage ratio to 2.87 as of December 31, 2023, and a slight improvement to 3.09 as of December 31, 2024.
The decreasing trend in the interest coverage ratio in 2023 raises concerns as it suggests that Silgan Holdings Inc may be facing challenges in generating sufficient earnings to cover its interest obligations. Despite the slight improvement in 2024, it would be important for the company to closely monitor its interest coverage ratio to ensure it maintains a healthy financial position and can meet its debt obligations comfortably.