Wabash National Corporation (WNC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 7.48 | 2.48 | 3.03 | 3.40 | 2.87 |
Wabash National Corporation demonstrates a strong solvency position based on its solvency ratios. The company has consistently maintained a debt-to-assets ratio of 0.00 across the years 2020 to 2024. This indicates that the company's total debt is negligible in comparison to its total assets, reflecting a low financial risk.
Similarly, the debt-to-capital and debt-to-equity ratios have also remained at 0.00 throughout the years, highlighting that Wabash National Corporation relies minimally on debt to finance its operations and investments. This signifies a healthy balance between debt and the company's capital and equity, showcasing financial stability and strength.
The financial leverage ratio has shown some variability, with a notable increase to 7.48 in 2024 from 2.87 in 2020. Although this spike in leverage may raise concerns about increased financial risk, it is essential to delve deeper into the reasons behind this change to assess its impact accurately.
Overall, Wabash National Corporation's solvency ratios portray a secure financial position with minimal reliance on debt for its operations, indicating a strong ability to meet its financial obligations and potentially seize growth opportunities in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -17.98 | 15.71 | 8.15 | 1.06 | -3.51 |
The interest coverage ratio for Wabash National Corporation has shown fluctuations over the years. In 2020, the company's interest coverage ratio was negative at -3.51, indicating that the company's earnings were insufficient to cover its interest expenses. This could be a sign of financial distress.
However, by the end of 2021, the interest coverage improved to 1.06, but it was still relatively low, suggesting that the company's earnings were just able to cover its interest obligations. This could imply a higher financial risk for the company.
The situation improved significantly by the end of 2022, with an interest coverage ratio of 8.15, indicating that the company's earnings were more than sufficient to cover its interest expenses. This suggests improved financial health and reduced risk of default.
By the end of 2023, the interest coverage ratio further increased to 15.71, demonstrating a strong ability to meet interest payments from earnings. This is a positive indicator of the company's financial stability and ability to service its debt obligations.
However, there was a significant decline in the interest coverage ratio by the end of 2024, falling to -17.98. This negative ratio suggests that the company's earnings were not enough to cover its interest expenses, raising concerns about its financial position and ability to meet debt obligations.
Overall, while there have been improvements in the interest coverage ratio over the years, the negative ratio in 2024 highlights potential financial challenges that Wabash National Corporation may need to address to ensure long-term solvency.