Whirlpool Corporation (WHR)

The solvency ratios of Whirlpool Corp., as reflected in the data provided, indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.

The debt-to-assets ratio has fluctuated over the past five years, ranging from 0.26 to 0.44, with a decreasing trend in recent years. This indicates that Whirlpool has moderate levels of debt relative to its total assets, with a significant portion of its assets financed through debt.

The debt-to-capital ratio has also varied over the years, showing a decreasing trend from 0.77 in 2022 to 0.52 in 2021. This ratio represents the proportion of debt in Whirlpool's capital structure, with the company relying on debt for approximately 52% to 77% of its capital in the last five years.

The debt-to-equity ratio has shown a similar pattern to the debt-to-capital ratio, reflecting a range of 1.08 to 3.26 over the period. This ratio indicates the extent to which Whirlpool's operations are funded by debt compared to equity, with higher ratios implying higher financial leverage and potential risk.

The financial leverage ratio, which measures the overall debt level of the company relative to its equity, has also fluctuated but remained relatively high, ranging from 4.19 to 7.33. This suggests that Whirlpool has a substantial amount of debt compared to its equity, highlighting a higher degree of financial risk.

Overall, Whirlpool Corp.'s solvency ratios suggest a mixed picture of its financial health, with manageable debt levels relative to assets and capital but elevated financial leverage and debt-to-equity ratios. It is important for investors and stakeholders to closely monitor these ratios to assess the company's ability to meet its debt obligations and maintain a healthy financial position.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.

Looking at Whirlpool Corp.'s interest coverage over the past five years, we observe a declining trend. In 2023, the interest coverage ratio stands at 3.16, signaling that the company's ability to cover its interest expenses with operating income has weakened compared to previous years.

The ratio was notably higher in 2021 and 2022 at 12.99 and 6.31, respectively, indicating stronger financial health during those periods. However, the sharp decrease in 2023 may raise concerns about Whirlpool's ability to service its debt obligations efficiently. It's worth noting that the ratios for 2020 and 2019 were 10.11 and 7.07, respectively, showing variations in the company's interest coverage over the years.

Overall, a lower interest coverage ratio in 2023 suggests heightened financial risk for Whirlpool Corp., potentially necessitating closer monitoring of its debt repayment capabilities and operational performance to ensure sustainable financial health.