SPX Corp (SPXC)
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 | 1.96 | 2.04 | 1.79 | 2.38 | 3.65 |
SPX Corp has consistently maintained a strong solvency position as reflected by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 from 2020 to 2024, indicating that the company has no debt relative to its assets, capital, and equity. This suggests that the company relies more on equity financing rather than debt to fund its operations, which can be viewed as a positive sign of financial stability.
Furthermore, the Financial leverage ratio has shown a declining trend from 3.65 in 2020 to 1.96 in 2024. This decline indicates that the company's reliance on debt to finance its operations has decreased over the years, while equity has played a larger role in the company's capital structure. A decreasing financial leverage ratio is generally seen as a positive signal as it reflects lower financial risk and a stronger financial position.
Overall, based on the solvency ratios provided, SPX Corp appears to be in a strong financial position with minimal debt levels and decreasing reliance on debt financing, which bodes well for the company's long-term financial health and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.59 | 8.19 | 3.91 | 6.26 | 5.44 |
To analyze SPX Corp's interest coverage, we will look at the trend over the 5-year period from 2020 to 2024. The interest coverage ratio is calculated as earnings before interest and taxes (EBIT) divided by interest expense. A higher ratio indicates the company's ability to cover its interest payments.
- In December 31, 2020, SPX Corp had an interest coverage ratio of 5.44, indicating that its EBIT was able to cover its interest expense approximately 5.44 times.
- By December 31, 2021, the ratio improved to 6.26, suggesting stronger ability to meet interest obligations.
- However, in December 31, 2022, the interest coverage ratio decreased to 3.91, which could indicate a lower capacity to cover interest payments compared to previous years.
- By December 31, 2023, the ratio rebounded to 8.19, signaling a significant improvement in the company's ability to service its debt obligations.
- In December 31, 2024, the interest coverage ratio remained relatively stable at 6.59, maintaining a healthy level of coverage.
Overall, SPX Corp's interest coverage showed fluctuations over the 5-year period, with some years indicating a stronger ability to cover interest payments than others. It is essential for investors and stakeholders to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.