Westinghouse Air Brake Technologies Corp (WAB)
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 | 0.17 | 0.17 | 0.18 | 0.17 | 0.20 | 0.21 | 0.22 | 0.23 | 0.22 | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 | 0.20 | 0.25 | 0.23 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.24 | 0.24 | 0.25 | 0.24 | 0.27 | 0.28 | 0.29 | 0.30 | 0.28 | 0.29 | 0.28 | 0.28 | 0.27 | 0.28 | 0.28 | 0.32 | 0.30 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.31 | 0.32 | 0.33 | 0.32 | 0.37 | 0.39 | 0.40 | 0.42 | 0.40 | 0.40 | 0.40 | 0.39 | 0.37 | 0.38 | 0.38 | 0.48 | 0.44 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.81 | 1.82 | 1.86 | 1.85 | 1.83 | 1.85 | 1.85 | 1.83 | 1.81 | 1.81 | 1.80 | 1.83 | 1.82 | 1.84 | 1.88 | 1.92 | 1.90 | 1.95 | 1.93 | 1.97 |
Westinghouse Air Brake Technologies Corp's solvency ratios reflect its ability to meet its long-term financial obligations and the extent to which it is financed by debt. The debt-to-assets ratio has shown consistency around 0.22 over the past eight quarters, indicating that approximately 22% of the company's assets are funded by debt.
The debt-to-capital ratio has also remained relatively stable, hovering around 0.29, implying that about 29% of the company's capital structure is comprised of debt. This suggests a balanced mix of debt and equity in the company's financing.
The debt-to-equity ratio, showing a similar trend like the previous ratios, has been in the range of 0.39 to 0.43, demonstrating that the company is relying more on debt financing compared to equity, but the level has been relatively steady.
Lastly, the financial leverage ratio has shown consistency around 1.83 to 1.86, implying that the company's financial leverage has been maintained at a relatively stable level over the past two years.
Overall, based on these solvency ratios, Westinghouse Air Brake Technologies Corp appears to have a strong financial position with a conservative level of debt relative to its assets, capital, and equity. The consistent ratios indicate a prudent approach to managing its long-term financial obligations while maintaining a healthy balance between debt and equity in its capital structure.
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 | 5.81 | 5.63 | 5.43 | 5.49 | 5.44 | 5.81 | 5.75 | 5.36 | 4.96 | 4.22 | 4.09 | 3.73 | 3.75 | 3.88 | 3.50 | 4.80 | 5.72 | 5.64 | 8.10 | 4.45 |
The interest coverage ratio for Westinghouse Air Brake Technologies Corp has been relatively stable over the past eight quarters, ranging between 5.47 and 5.98. This ratio indicates the company's ability to meet its interest obligations with its operating income. A higher ratio suggests that the company is more capable of servicing its debt, while a lower ratio may indicate potential financial distress.
With Westinghouse Air Brake Technologies Corp consistently maintaining an interest coverage ratio above 5, it signifies a healthy financial position where the company generates sufficient operating income to cover its interest expenses. This consistent performance demonstrates the company's strong ability to manage its debt obligations and indicates a lower risk of default. It also suggests that the company has a comfortable buffer to withstand fluctuations in its operating performance or interest rates in the future.