Spire Inc (SR)

The solvency ratios of Spire Inc. indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been gradually increasing over the past five years, reaching 0.45 in 2023, showing that 45% of the company's assets are financed by debt. The debt-to-capital ratio has also shown a consistent upward trend, reaching 0.61 in 2023, demonstrating that 61% of the company's capital is derived from debt.

Furthermore, the debt-to-equity ratio has shown a similar increasing trend, reaching 1.59 in 2023, indicating that for every dollar of equity, the company has $1.59 in debt. This suggests an increasing reliance on debt financing relative to equity. Additionally, the financial leverage ratio has fluctuated but also shows a gradually increasing trend, reaching 3.52 in 2023, indicating that the company's assets are 3.52 times greater than its equity capital.

Overall, the increasing trend in these solvency ratios may raise concerns about the company's ability to withstand financial difficulties in the long term, as it indicates a higher proportion of debt in the company's capital structure. It is important for stakeholders to monitor these ratios and assess the company's ability to effectively manage its debt levels.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a better ability to cover interest expenses.

Looking at Spire Inc.'s interest coverage over the past five years, we can observe a declining trend. In 2023, the interest coverage ratio was 2.25, down from 3.41 in 2022 and 4.22 in 2021. This suggests a weakening ability to cover interest expenses. However, it's important to recognize that a single year's data may not indicate a sustained trend; additional context and information about the company's financial health would be necessary for a complete assessment.