Woodward Inc (WWD)

Solvency ratios

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 Dec 31, 2019
Debt-to-assets ratio 0.13 0.13 0.15 0.16 0.16 0.16 0.16 0.17 0.19 0.19 0.19 0.18 0.18 0.18 0.18 0.19 0.19 0.19 0.21 0.18
Debt-to-capital ratio 0.21 0.21 0.22 0.23 0.24 0.24 0.24 0.25 0.27 0.27 0.26 0.25 0.25 0.25 0.26 0.27 0.27 0.28 0.31 0.29
Debt-to-equity ratio 0.26 0.26 0.28 0.30 0.31 0.31 0.32 0.33 0.37 0.38 0.35 0.33 0.33 0.34 0.35 0.36 0.37 0.38 0.46 0.41
Financial leverage ratio 2.01 2.00 1.87 1.89 1.94 1.92 1.99 2.01 2.00 1.97 1.90 1.81 1.85 1.86 1.88 1.92 1.96 2.05 2.13 2.23

Woodward Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations and manage its debt levels.

The debt-to-assets ratio has been relatively stable around 0.15 to 0.19 over the past few quarters, indicating that between 15% to 19% of Woodward's total assets are financed by debt, with the rest funded by equity. This suggests a conservative approach to leverage.

The debt-to-capital ratio has also shown consistency, ranging from 0.21 to 0.29, demonstrating that between 21% to 29% of the company's capital structure is comprised of debt. This ratio reflects the extent to which debt is utilized to finance operations and investments.

The debt-to-equity ratio has exhibited a similar trend, hovering around 0.26 to 0.46, indicating that the company relies more on equity to finance its operations compared to debt. A lower ratio signifies lower financial risk as it implies that the company has a higher proportion of equity in its capital structure.

The financial leverage ratio has varied but largely maintained within 1.81 to 2.23, indicating that Woodward has been managing its financial leverage effectively. A higher ratio suggests a higher level of financial risk due to increased dependence on debt financing.

Overall, Woodward Inc's solvency ratios show a conservative approach to debt management, with a significant portion of its assets funded by equity. This suggests a strong financial position and ability to weather economic downturns or unexpected financial challenges.

Coverage ratios

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 Dec 31, 2019
Interest coverage 10.47 10.75 10.26 8.34 6.76 6.16 5.28 6.19 6.79 7.02 7.29 8.01 8.17 8.25 7.80 8.50 8.87 8.99 9.79 8.80

Interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations with its operating income.

Analyzing Woodward Inc's interest coverage ratio over the past few quarters shows a generally positive trend. The ratio has been consistently above 1, indicating that Woodward Inc has generated sufficient operating income to cover its interest expenses.

The interest coverage ratio has shown fluctuations over the analyzed periods, with a range of 5.28 to 10.75. A higher ratio is generally favorable as it suggests a stronger ability to meet interest payments.

In recent quarters, the interest coverage ratio has been relatively stable, hovering around 8 to 10. This indicates that Woodward Inc's operating income is robust enough to comfortably cover its interest expenses.

Overall, based on the trend observed, Woodward Inc's interest coverage ratio appears to be healthy and stable, reflecting the company's strong financial position in terms of meeting its debt obligations.