Standex International Corporation (SXI)

Solvency ratios provide valuable insight into a company's ability to meet its long-term financial obligations. Looking at Standex International Corporation's solvency ratios over the past five years, we observe a generally improving trend indicated by decreasing values across most ratios.

The debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, has been declining steadily from 0.21 in 2020 to 0.15 in 2024. This suggests that Standex International has been relying less on debt to fund its operations and acquisitions.

Similarly, the debt-to-capital ratio, showing the percentage of a company's capital that comes from debt, decreased from 0.30 in 2020 to 0.19 in 2024. This reduction implies a lower financial risk associated with debt financing and a stronger capital structure.

The debt-to-equity ratio, indicating the extent to which a company is financed by debt relative to shareholders' equity, has also shown a downward trend from 0.43 in 2020 to 0.24 in 2024. This signifies a decreasing reliance on debt and a more balanced mix of financing sources.

Lastly, the financial leverage ratio, which measures the extent of a company's financial leverage, has declined from 2.02 in 2020 to 1.62 in 2024. This suggests that Standex International has been able to reduce its financial leverage over the years, indicating a stronger financial position and lower risk of insolvency.

Overall, the declining solvency ratios for Standex International Corporation point towards an improved financial health and a more sustainable long-term financial structure, demonstrating the company's ability to meet its debt obligations and potential future growth prospects.

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Coverage ratios

The interest coverage ratio of Standex International Corporation has exhibited an overall increasing trend over the past five years, reflecting the company's improving ability to cover its interest expenses with operating income.

In the most recent fiscal year, as of June 30, 2024, the interest coverage ratio stood at 21.82, indicating that the company generated operating income more than 21 times its interest expenses. This signifies a robust financial position and suggests that Standex International Corporation has a strong capacity to meet its debt obligations.

The significant improvement in the interest coverage ratio from 5.45 in June 2020 to 21.82 in June 2024 reflects the company's enhanced profitability and efficiency in managing debt. It indicates that Standex International Corporation has been consistently generating sufficient operating income to comfortably cover its interest payments, which is a positive indicator for creditors and investors.

Overall, the upward trend in the interest coverage ratio of Standex International Corporation demonstrates a strengthening financial performance and a favorable ability to service its debt obligations effectively.