Waters Corporation (WAT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.40 | 0.45 | 0.00 | 0.50 | 0.55 | 0.57 | 0.43 | 0.46 | 0.49 | 0.47 | 0.47 | 0.49 | 0.52 | 0.52 | 0.50 | 0.42 | 0.53 | 0.58 | 0.69 |
| Debt-to-capital ratio | 0.47 | 0.53 | 0.59 | 0.00 | 0.67 | 0.73 | 0.77 | 0.70 | 0.75 | 0.80 | 0.79 | 0.79 | 0.80 | 0.85 | 0.86 | 0.87 | 0.84 | 1.03 | 1.14 | 1.22 |
| Debt-to-equity ratio | 0.89 | 1.14 | 1.42 | 0.00 | 2.00 | 2.71 | 3.35 | 2.38 | 3.02 | 3.88 | 3.66 | 3.85 | 4.12 | 5.47 | 5.98 | 6.94 | 5.20 | — | — | — |
| Financial leverage ratio | 2.49 | 2.81 | 3.15 | 3.59 | 4.02 | 4.97 | 5.90 | 5.51 | 6.50 | 7.97 | 7.75 | 8.11 | 8.42 | 10.55 | 11.57 | 13.91 | 12.23 | — | — | — |
Waters Corporation's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
The trend in Waters Corporation's debt-to-assets ratio has generally been decreasing from 0.69 in March 2020 to 0.36 in December 2024. This indicates that the company is reducing its reliance on debt financing in relation to its total assets over time. The significant drop to 0.00 in March 2024 implies that the company may have paid off all its debt or restructured its liabilities.
2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio for Waters Corporation has shown a declining trend, decreasing from 1.22 in March 2020 to 0.47 in December 2024. This suggests that the company has been reducing its debt relative to its total capital, which includes both debt and equity. The ratio reaching 0.00 in March 2024 may indicate a significant decrease in debt levels or a change in the capital structure.
3. Debt-to-equity ratio:
Waters Corporation's debt-to-equity ratio fluctuated over the years but generally trended downwards from 5.20 in December 2020 to 0.89 in December 2024. This signifies that the company has been decreasing its reliance on debt financing in comparison to equity. The ratio hitting 0.00 in March 2024 suggests a possible shift to a debt-free position or a substantial increase in equity.
4. Financial leverage ratio:
The financial leverage ratio, which measures the company's level of financial leverage, decreased consistently from 12.23 in December 2020 to 2.49 in December 2024. This indicates that Waters Corporation has been gradually reducing its financial risk by decreasing its level of debt relative to equity. The decreasing trend implies a stronger financial position and lower reliance on borrowed funds for the company's operations.
Overall, the solvency ratios of Waters Corporation demonstrate a positive trend towards lower debt levels, improved capital structure, and reduced financial risk over the analyzed period.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.21 | 7.87 | 6.94 | 7.07 | 8.27 | 10.23 | 13.31 | 16.33 | 18.71 | 19.45 | 20.06 | 19.70 | 18.29 | 18.25 | 19.27 | 19.70 | 17.41 | 15.36 | 15.32 | 17.31 |
Based on the provided data, Waters Corporation's interest coverage ratio has fluctuated over the past few years. The interest coverage ratio indicates the company's ability to meet its interest payment obligations with its operating income.
From March 31, 2020, to June 30, 2021, the interest coverage ratio ranged between 15.32 and 19.70, showing a relatively strong ability to cover interest expenses. This suggests that Waters Corporation had comfortable margins to meet its interest payments during this period.
However, from September 30, 2021, to December 31, 2024, the interest coverage ratio steadily declined from 18.25 to 9.21, indicating a potential increase in financial risk. A declining interest coverage ratio could signal that the company may be facing challenges in generating sufficient operating income to cover its interest payments.
By March 31, 2024, the interest coverage ratio dropped to 7.07, further highlighting a potential strain on Waters Corporation's ability to cover interest expenses. The decreasing trend in the interest coverage ratio warrants closer monitoring of the company's financial performance and liquidity position to ensure it can meet its debt obligations in the future.