Westinghouse Air Brake Technologies Corp (WAB)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.17 | 0.20 | 0.22 | 0.21 |
| Debt-to-capital ratio | 0.26 | 0.24 | 0.27 | 0.28 | 0.27 |
| Debt-to-equity ratio | 0.34 | 0.31 | 0.37 | 0.40 | 0.37 |
| Financial leverage ratio | 1.85 | 1.81 | 1.83 | 1.81 | 1.82 |
Westinghouse Air Brake Technologies Corp's solvency ratios indicate the company's ability to meet its long-term financial obligations.
- The Debt-to-assets ratio has shown a slight decrease from 0.21 in 2020 to 0.19 in 2024. This suggests that the company's total debt relative to its total assets has decreased over this period.
- The Debt-to-capital ratio has also exhibited a decreasing trend, moving from 0.27 in 2020 to 0.26 in 2024. This indicates that the proportion of the company's debt to its total capital has decreased over the years.
- The Debt-to-equity ratio has shown a fluctuating pattern, with a peak at 0.40 in 2021 and then decreasing to 0.34 in 2024. This reflects changes in the company's financial structure and its reliance on debt versus equity financing.
- The Financial leverage ratio has remained relatively stable around 1.81 to 1.85 from 2020 to 2024. This ratio indicates the company's level of financial risk and the extent to which it relies on debt to finance its operations.
Overall, Westinghouse Air Brake Technologies Corp's solvency ratios suggest that the company has been managing its long-term debt levels effectively, with a trend towards lower debt relative to assets and capital over the years. However, fluctuations in the Debt-to-equity ratio indicate shifts in the company's financing strategy that may warrant further analysis.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.00 | 5.81 | 5.44 | 4.95 | 3.75 |
Westinghouse Air Brake Technologies Corp has shown a positive trend in its interest coverage ratio over the past five years. The interest coverage ratio has increased steadily from 3.75 in December 31, 2020, to 8.00 in December 31, 2024. This indicates that the company's ability to cover its interest expenses with its earnings has improved significantly over the period.
A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations using its operating income. This improvement in the interest coverage ratio is a positive sign of the company's financial health and indicates that it has become more efficient in managing its debt levels and interest payments.
Overall, the increasing trend in Westinghouse Air Brake Technologies Corp's interest coverage ratio reflects a strengthening financial position and a reduced risk of financial distress due to insufficient earnings to cover interest expenses.