Whirlpool Corporation (WHR)

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 0.37 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 0.22 0.22 0.21 0.21
Debt-to-capital ratio 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 0.56 0.58 0.60 0.60
Debt-to-equity ratio 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 1.30 1.36 1.51 1.48
Financial leverage ratio 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 5.94 6.08 7.22 7.03

The solvency ratios of Whirlpool Corp. provide insights into the company's ability to meet its long-term financial obligations.

The trend in the debt-to-assets ratio over the past eight quarters shows a relatively stable range, with the latest value at 0.42 in Q4 2023. This ratio indicates that 42% of the company's assets are financed by debt, signalling a moderate level of leverage.

The debt-to-capital ratio has also displayed a consistent trend, hovering around the 0.75 to 0.79 range over the same period. This ratio, standing at 0.75 in Q4 2023, implies that debt constitutes around 75% of the company's total capital structure.

The debt-to-equity ratio has shown more variability, peaking at 3.83 in Q2 2023 and declining to 3.06 in Q4 2023. This ratio illustrates the extent to which Whirlpool relies on debt financing versus equity, with the latest value indicating that debt is approximately three times greater than equity in the capital structure.

Furthermore, the financial leverage ratio has also displayed fluctuations, reaching a high of 8.41 in Q2 2023 and settling at 7.33 in Q4 2023. This ratio indicates the company's degree of financial leverage, with the latest value suggesting that Whirlpool's assets are leveraged over seven times by debt.

Overall, Whirlpool Corp.'s solvency ratios depict a moderate level of leverage and indicate a mix of debt and equity in the company's capital structure. It is essential for investors and stakeholders to monitor these ratios to assess the company's ability to manage its long-term debt obligations effectively.


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 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 9.19 8.35 5.90 1.92

Whirlpool Corp.'s interest coverage ratio has exhibited a declining trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet interest obligations with its operating income. A higher ratio indicates greater profitability and financial stability as the company has more earnings available to cover its interest expenses.

From Q1 2022 to Q4 2023, Whirlpool Corp.'s interest coverage ratio declined from 12.26 to 3.16. This downward trend signifies a decrease in the company's ability to cover its interest expenses with operating income. The ratio has fallen significantly, indicating potential concerns about the company's financial health and ability to service its debt.

It is important for investors and analysts to monitor Whirlpool Corp.'s interest coverage ratio closely, as a continued decline could signal increasing financial risk for the company. Management may need to address this issue by improving profitability, reducing debt levels, or optimizing the company's capital structure to enhance its interest coverage ratio and overall financial stability.