Simpson Manufacturing Company Inc (SSD)
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 | 0.15 | 0.19 | 0.20 | 0.17 | 0.17 | 0.26 | 0.27 | 0.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.12 | 0.13 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.20 | 0.24 | 0.26 | 0.22 | 0.23 | 0.33 | 0.34 | 0.27 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | 0.14 | 0.15 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.24 | 0.32 | 0.34 | 0.29 | 0.31 | 0.49 | 0.52 | 0.37 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 | 0.17 | 0.18 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.61 | 1.69 | 1.72 | 1.72 | 1.77 | 1.87 | 1.93 | 1.85 | 1.25 | 1.27 | 1.26 | 1.28 | 1.26 | 1.33 | 1.44 | 1.42 | 1.23 | 1.24 | 1.23 | 1.23 |
The solvency ratios of Simpson Manufacturing Co., Inc. reflect its ability to meet its long-term debt obligations and its overall financial leverage.
The debt-to-assets ratio has shown a decreasing trend from 0.30 in Q1 2022 to 0.18 in Q4 2023. This indicates that the company has been able to reduce its reliance on debt to finance its assets over time, which may improve its overall financial stability.
Similarly, the debt-to-capital and debt-to-equity ratios have also displayed a downward trend, showcasing a decrease in the proportion of debt in the company's capital structure. This suggests that Simpson Manufacturing Co., Inc. has been able to strengthen its financial position by relying less on debt financing and potentially increasing its equity base.
The financial leverage ratio has fluctuated but shows a slight decrease from Q1 2022 to Q4 2023. A lower financial leverage ratio indicates that the company is using less debt to support its operations relative to its equity. This could imply lower financial risk and better solvency for the company.
Overall, the decreasing trends in these solvency ratios suggest that Simpson Manufacturing Co., Inc. has been effectively managing its debt levels and improving its financial stability over the periods analyzed.
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 | 79.99 | 45.53 | 49.98 | 52.69 | 57.19 | 562.96 | 536.79 | 499.23 | 432.19 | 137.31 | 132.79 | 119.35 | 110.54 | 124.70 | 109.02 | 99.35 | 89.38 | 557.93 | 484.13 | 339.25 |
The interest coverage ratio for Simpson Manufacturing Co., Inc. has fluctuated over the past eight quarters, indicating varying levels of the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In Q1 2022, the interest coverage ratio was robust at 185.76, suggesting a strong ability to meet interest obligations. This may indicate a comfortable financial position and efficient operations. However, this ratio decreased in subsequent quarters, reaching its lowest point in Q1 2023 at 60.05. The significant drop in interest coverage could signify a potential strain on the company's financial health as the ability to cover interest expenses declined.
In Q2 and Q3 2023, the interest coverage ratio showed some improvement, but it remained relatively low compared to the levels seen in the previous year. The ratio of 615.58 in Q3 2023 indicates a substantial recovery but might also raise questions about the unusually high value compared to historical trends.
It is essential for investors and stakeholders to monitor the interest coverage ratio closely to assess the company's ability to meet its debt obligations and manage financial risks effectively. Further analysis of the company's financial performance and debt management strategies would provide deeper insights into the reasons behind the fluctuations in the interest coverage ratio for Simpson Manufacturing Co., Inc.