Tempur Sealy International Inc (TPX)
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 | 0.49 | 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 | 0.81 | 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 | 4.18 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 13.66 | 20.32 | 30.99 | 104.06 | — | — | — | — | 15.13 | 12.04 | 7.99 | 10.83 | 6.57 | 7.57 | 12.82 | 15.86 | 8.52 | 9.22 | 9.96 | 11.70 |
Tempur Sealy International Inc's solvency ratios show some fluctuations over the past eight quarters. The debt-to-assets ratio has ranged from 0.56 to 0.63, indicating that the company finances, on average, 56% to 63% of its assets through debt. The trend shows a slight decrease from Q1 2023 to Q4 2023, which may imply improved financial stability.
The debt-to-capital ratio has varied between 0.89 and 0.99 over the same period, suggesting that around 89% to 99% of the company's capital comes from debt. This ratio has exhibited an increasing trend, peaking at 0.99 in Q1 2023, which indicates a potential higher reliance on debt for financing operations.
The debt-to-equity ratio presents significant fluctuations, ranging from 7.95 to 81.93. The sharp increase in Q1 2023 suggests a substantial shift towards higher debt compared to equity financing, which might raise concerns about the company's financial risk and sustainability.
The financial leverage ratio also demonstrates notable variations, with values ranging from 14.08 to 130.75. The considerable spike in Q1 2023 signals a significant increase in leverage, emphasizing the company's heightened reliance on debt to support its operations.
Overall, the solvency ratios of Tempur Sealy International Inc highlight fluctuations in the company's capital structure and debt levels, warranting further investigation into its financial strategies and risk management practices to ensure long-term financial health and stability.
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 | 4.52 | 4.81 | 5.18 | 5.49 | 6.58 | 8.53 | 10.59 | 11.96 | 13.41 | 13.41 | 11.12 | 8.81 | 6.86 | 5.19 | 4.39 | 4.61 | 4.08 | 3.59 | 3.06 | 2.76 |
The interest coverage of Tempur Sealy International Inc has been fluctuating over the past eight quarters. The trend indicates a declining interest coverage ratio from 12.18 in Q1 2022 to 4.67 in Q4 2023. This may raise concerns about the company's ability to meet its interest obligations with operating income. A higher interest coverage ratio is generally preferred as it indicates a company's better ability to cover its interest expenses from its operating income. However, it's important to note that a single ratio may not provide a complete picture of a company's financial health, and it's advisable to consider other financial ratios and factors when evaluating the overall financial performance of Tempur Sealy International Inc.