Wabash National Corporation (WNC)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 7.48 | 7.26 | 2.43 | 2.52 | 2.48 | 2.68 | 2.88 | 3.08 | 3.03 | 3.52 | 3.82 | 3.70 | 3.40 | 3.03 | 2.95 | 3.05 | 2.87 | 3.01 | 2.90 | 3.11 |
The solvency ratios of Wabash National Corporation indicate a very strong financial position in terms of its ability to meet its long-term obligations.
1. Debt-to-assets ratio: The company consistently maintains a debt-to-assets ratio of 0.00 throughout the reported periods. This implies that the company finances its assets primarily through equity rather than debt, resulting in a low-risk financial structure.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains constant at 0.00 across all the periods. This indicates that the company relies entirely on equity financing for its capital structure, further enhancing its financial stability.
3. Debt-to-equity ratio: Wabash National Corporation continues to report a debt-to-equity ratio of 0.00 throughout the provided data. This signifies that the company's debt level is negligible in comparison to its equity, reflecting a conservative financial strategy.
4. Financial leverage ratio: The financial leverage ratio fluctuates over the years, ranging from 2.43 to 7.48. The spike observed in the last two quarters of 2024 might be indicative of a significant increase in debt relative to equity, suggesting a more leveraged capital structure during that period. However, overall, the company has maintained a moderate level of leverage over the reported periods.
In conclusion, Wabash National Corporation demonstrates a strong solvency position with minimal debt levels and prudent financial management practices, as evidenced by its stable solvency ratios.
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 | -17.94 | -14.87 | 10.91 | 13.84 | 15.88 | 15.37 | 13.95 | 10.52 | 8.13 | 4.00 | 2.23 | 1.36 | 0.91 | 2.73 | 2.33 | 1.75 | -3.29 | -2.45 | -1.13 | 0.59 |
The interest coverage ratio measures a company's ability to pay interest on its outstanding debt obligations. A higher ratio indicates a better ability to meet interest payments, while a lower ratio suggests potential financial distress.
Analyzing the interest coverage ratio of Wabash National Corporation over the specified periods shows a significant fluctuation in the company's ability to cover its interest expenses:
- From March 31, 2020, to December 31, 2022, the interest coverage ratio gradually improved, indicating a better ability to cover interest costs.
- The ratio peaked at 15.88 on December 31, 2023, indicating a strong capacity to meet interest obligations.
- However, a sharp decline in the interest coverage ratio was observed in the subsequent periods, notably dropping to negative figures on September 30, 2024, and December 31, 2024. This suggests potential challenges in covering interest expenses during those periods.
Overall, it is important for Wabash National Corporation to maintain a sustainable interest coverage ratio to ensure financial stability and meet its debt obligations efficiently. Monitoring this ratio over time can provide insights into the company's financial health and risk management strategies.