Stanley Black & Decker Inc (SWK)

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 0.26 0.25 0.24 0.24 0.21 0.21 0.18 0.18 0.15 0.17 0.18 0.18 0.18 0.20 0.20 0.20 0.15 0.18 0.18 0.18
Debt-to-capital ratio 0.40 0.40 0.39 0.39 0.36 0.36 0.37 0.36 0.27 0.27 0.28 0.27 0.28 0.31 0.32 0.34 0.26 0.32 0.32 0.33
Debt-to-equity ratio 0.67 0.65 0.64 0.64 0.55 0.56 0.59 0.57 0.38 0.38 0.38 0.37 0.38 0.45 0.47 0.52 0.35 0.47 0.48 0.49
Financial leverage ratio 2.61 2.58 2.62 2.64 2.57 2.67 3.23 3.14 2.43 2.15 2.16 2.09 2.13 2.22 2.31 2.56 2.25 2.58 2.62 2.71

The solvency ratios of Stanley Black & Decker Inc show a consistent and stable financial position over the past five years. The debt-to-assets ratio, which measures the proportion of assets financed by debt, has remained relatively low, ranging from 0.15 to 0.26. This indicates that the company relies more on equity financing to support its operations.

The debt-to-capital ratio, which indicates the percentage of capital that comes from debt, has also been stable, fluctuating between 0.26 and 0.40. This suggests that the company maintains a healthy balance between debt and equity in its capital structure.

The debt-to-equity ratio, showing the relationship between debt and shareholders' equity, has remained conservative, with values ranging from 0.35 to 0.67. This indicates that the company has a higher proportion of equity relative to debt in its capital structure.

The financial leverage ratio, which provides an overall measure of the company's financial risk, has also been consistent, with values ranging from 2.09 to 3.23. This implies that the company has managed its debt levels effectively and has not taken on excessive financial risk.

Overall, based on these solvency ratios, Stanley Black & Decker Inc appears to have a strong and stable financial position, with a balanced capital structure and prudent management of debt levels.

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 0.28 0.26 1.97 2.37 3.75 5.54 4.73 7.96 10.41 11.77 11.69 9.21 6.71 5.00 3.96 4.87 4.84 4.63 4.62 4.49

The interest coverage ratio of Stanley Black & Decker Inc has fluctuated over the past few quarters. It measures the company's ability to meet its interest expenses with its operating income. A higher ratio indicates a greater ability to cover interest payments.

Looking at the trend, the interest coverage ratio declined from 7.96 in March 2022 to 0.26 in September 2023, indicating a significant decrease in the company's ability to cover interest expenses during this period. However, the ratio improved to 1.97 in June 2023 and further increased to 2.37 in March 2023, showing a recovery in the company's ability to cover interest costs.

The company's interest coverage ratio was relatively strong in the past, with ratios above 4 consistently for several quarters. This suggests that Stanley Black & Decker Inc historically had a comfortable level of operating income to cover its interest obligations.

Investors and creditors typically look for a stable or improving interest coverage ratio to ensure that the company can meet its debt obligations. The fluctuations in the interest coverage ratio of Stanley Black & Decker Inc indicate varying levels of financial health and risk over the analyzed period. It would be important to further investigate the reasons behind the fluctuations to assess the company's overall financial health and sustainability.