Whirlpool Corporation (WHR)

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 0.29 0.37 0.36 0.38 0.37 0.38 0.38 0.44 0.43 0.27 0.26 0.24 0.24 0.24 0.25 0.24 0.25 0.24 0.26 0.23
Debt-to-capital ratio 0.64 0.68 0.67 0.74 0.73 0.75 0.76 0.78 0.76 0.53 0.54 0.50 0.50 0.50 0.50 0.54 0.57 0.60 0.62 0.60
Debt-to-equity ratio 1.77 2.10 2.04 2.84 2.72 3.07 3.17 3.58 3.15 1.13 1.20 1.01 1.02 1.00 1.01 1.18 1.30 1.47 1.62 1.52
Financial leverage ratio 6.08 5.64 5.60 7.38 7.33 8.18 8.41 8.18 7.33 4.19 4.55 4.26 4.19 4.11 4.06 4.82 5.26 6.04 6.19 6.65

The solvency ratios of Whirlpool Corporation indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio shows the proportion of Whirlpool's assets financed by debt. The trend indicates an increase from 0.23 in March 2020 to 0.29 in December 2024. This indicates that over time, the company has been relying more on debt to finance its assets.

2. Debt-to-capital ratio: This ratio reflects the percentage of Whirlpool's capital structure that is funded by debt. The ratio decreased from 0.60 in March 2020 to 0.64 in December 2024, showing fluctuations but overall maintaining a moderate level of debt compared to total capital.

3. Debt-to-equity ratio: This ratio highlights the proportion of Whirlpool's financing that comes from debt as opposed to equity. The ratio increased significantly from 1.52 in March 2020 to 1.77 in December 2024, indicating a higher reliance on debt for financing operations.

4. Financial leverage ratio: This ratio measures the extent to which Whirlpool utilizes debt in its capital structure. The ratio fluctuated throughout the period, ranging from 4.06 to 8.41, with a peak in June 2023. This suggests that Whirlpool has been increasing its financial leverage over time, which may pose risks in times of economic uncertainty.

Overall, the solvency ratios of Whirlpool Corporation demonstrate a varying level of reliance on debt financing, with the debt-to-assets and debt-to-equity ratios showing a more pronounced increase over the years. Investors and stakeholders should monitor these ratios closely to assess the company's long-term financial health and ability to manage its debt obligations.

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 0.45 1.86 1.84 2.33 2.59 -2.96 -3.67 -6.96 -5.60 5.46 7.54 13.44 14.15 14.73 14.02 10.48 8.70 7.25 8.26 8.98

Whirlpool Corporation's interest coverage ratio has fluctuated over the years, indicating varying levels of ability to cover its interest expenses with operating income.

From March 2020 to June 2021, the interest coverage ratio generally improved, reaching its peak at over 14 times in June 2021, suggesting a strong ability to meet interest obligations. However, the ratio declined in the following quarters, dropping to as low as -6.96 by March 2023 and remaining negative until December 2023, indicating difficulties in covering interest payments with operating income during this period.

Subsequently, the interest coverage ratio started to recover, turning positive again by the end of December 2023. The ratio remained relatively low through 2024, ranging from 0.45 to 2.59, implying a lower but stable ability to cover interest expenses with operating income during this period.

Overall, Whirlpool Corporation's interest coverage ratio experienced significant volatility, showing both strengths and weaknesses in its ability to handle interest payments over the analyzed period. Further monitoring of this ratio and the company's financial performance is advisable to assess its long-term financial stability.