Westinghouse Air Brake Technologies Corp (WAB)

The solvency ratios of Westinghouse Air Brake Technologies Corp indicate a consistent trend of maintaining a relatively low level of debt in relation to its assets, capital, and equity over the past five years. The Debt-to-assets ratio has remained stable around 0.21 to 0.23 during this period, reflecting that the company uses a moderate amount of debt to finance its assets.

Similarly, the Debt-to-capital ratio has been steady at 0.28 to 0.31, indicating that a significant portion of the company's capital structure is financed through equity rather than debt. The Debt-to-equity ratio has also followed a consistent trend, ranging from 0.39 to 0.44, demonstrating a moderate level of debt in comparison to shareholder equity.

The Financial leverage ratio, which measures the extent to which the company relies on debt financing, has fluctuated slightly but has generally been within a narrow range of 1.81 to 1.90. This suggests that the company's financial risk has been relatively stable over the years, with a modest level of leverage in its capital structure.

Overall, the solvency ratios of Westinghouse Air Brake Technologies Corp indicate a prudent approach to managing debt and maintaining a healthy balance between debt and equity in its capital structure, which contributes to the company's overall financial stability and creditworthiness.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. In the case of Westinghouse Air Brake Technologies Corp, the interest coverage ratio has been steadily increasing over the past five years, indicating an improving ability to meet its interest obligations from its operating profits.

In 2019 and 2020, the interest coverage ratio was 3.06 and 3.79, respectively, showing a relatively lower ability to cover interest expenses with operating income. However, from 2021 to 2023, the ratio improved significantly to 5.06, 5.53, and 5.92, respectively.

This upward trend in the interest coverage ratio suggests that Westinghouse Air Brake Technologies Corp has been generating sufficient operating income to comfortably cover its interest expenses. It indicates a positive financial performance and financial health position, as higher coverage ratios imply lower financial risk associated with debt repayment.

Overall, the consistent improvement in the interest coverage ratio reflects a stronger financial position for Westinghouse Air Brake Technologies Corp in terms of its ability to service its debt obligations.