SPX Corp (SPXC)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 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 | 2.04 | 2.16 | 2.13 | 1.80 | 1.79 | 2.30 | 2.29 | 2.30 | 2.38 | 2.33 | 3.26 | 3.42 | 3.65 | 3.86 | 4.09 | 4.31 | 4.24 | 4.47 | 4.73 | 5.06 |
Based on the solvency ratios of SPX Corp over the past several quarters, there are several key observations:
1. Debt-to-assets, debt-to-capital, and debt-to-equity ratios all remain consistently at 0.00, indicating that the company has not taken on any debt relative to its assets, capital, or equity during the periods analyzed.
2. The financial leverage ratio has fluctuated significantly over the quarters, ranging from 1.79 to 5.06. This ratio measures the extent to which the company is using debt to finance its assets, with higher values indicating higher financial leverage. The increasing trend in the financial leverage ratio over time suggests that the company has been relying more on debt to support its operations and investments.
3. A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. The fluctuating and generally increasing trend in SPX Corp's financial leverage ratio may suggest a higher level of financial risk as the company becomes more leveraged.
In conclusion, while SPX Corp has maintained a debt-free status in terms of traditional solvency ratios like debt-to-assets, debt-to-capital, and debt-to-equity, the increasing financial leverage ratio highlights a trend towards higher reliance on debt to fund its activities, which may pose risks to the company's financial stability in the long run.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.83 | 4.27 | 6.97 | 6.12 | 1.81 | 4.94 | 36.70 | 37.37 | 33.80 | 30.27 | 9.79 | 7.20 | 6.84 | 6.73 | 6.50 | 6.03 | 4.70 | 4.99 | 4.13 | 4.16 |
The interest coverage ratio of SPX Corp has exhibited fluctuating values over the past several quarters. For the most recent period, the company's interest coverage ratio was 5.83, indicating that SPX Corp generated earnings before interest and taxes (EBIT) that were 5.83 times greater than its interest expenses in that quarter. This suggests that the company was relatively comfortable in meeting its interest obligations.
Looking at the trend over the last few quarters, we observe variations in the interest coverage ratio. The ratios seem to have been relatively stable in the mid-single digits until a significant spike to 36.70 and 37.37 in the second and third quarters of 2022, respectively. These exceptionally high values may be attributed to unique or non-recurring factors impacting the company's financial performance during those quarters.
Subsequently, the interest coverage ratio decreased to 1.81 in the fourth quarter of 2022, which could raise concerns about the company's ability to cover its interest payments from its operating earnings. However, the ratio then rebounded and remained at healthier levels above 4 in the subsequent quarters.
Overall, the trend in SPX Corp's interest coverage ratio reflects some volatility, suggesting that analysts and stakeholders should closely monitor the company's financial performance and debt obligations to assess its ability to service its debt in the future.