Woodward Inc (WWD)
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 | 0.16 | 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 | 0.22 | 0.25 | 0.25 |
| Debt-to-capital ratio | 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 | 0.33 | 0.37 | 0.37 |
| Debt-to-equity ratio | 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 | 0.50 | 0.59 | 0.59 |
| Financial leverage ratio | 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 | 2.29 | 2.36 | 2.33 |
Solvency ratios are crucial indicators of a company's ability to meet its long-term financial obligations. Based on the provided data for Woodward Inc, we observe the following trends in the solvency ratios over the past eight quarters:
1. Debt-to-assets ratio: This ratio measures the proportion of a company's total assets that are financed by debt. Woodward Inc's debt-to-assets ratio has shown a decreasing trend from 0.21 in Q1 2023 to 0.17 in Q1 2024. This indicates that the company has been able to reduce its reliance on debt to finance its assets over the quarters.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of a company's capital structure that is financed by debt. Woodward Inc's debt-to-capital ratio has also exhibited a declining pattern, decreasing from 0.30 in Q1 2023 to 0.25 in Q1 2024. This trend suggests that the company has been lowering its debt component relative to its total capital over the quarters.
3. Debt-to-equity ratio: This ratio compares a company's total debt to its shareholder's equity, indicating the leverage of equity in the capital structure. Woodward Inc's debt-to-equity ratio has shown a consistent decline from 0.43 in Q1 2023 to 0.33 in Q1 2024. This decreasing trend implies that the company has been reducing its debt relative to the equity financing over the periods.
4. Financial leverage ratio: The financial leverage ratio gauges the extent of a company's debt in its capital structure. Woodward Inc's financial leverage ratio has fluctuated slightly but has generally remained stable around the range of 1.90 to 2.01 over the quarters. This implies that the company's leverage position has been relatively consistent, with minor fluctuations in its debt level compared to equity.
In conclusion, Woodward Inc's solvency ratios reflect a positive trend of decreasing debt dependency and improving leverage ratios over the analyzed quarters. This indicates a strengthening financial position concerning the company's ability to honor its long-term financial obligations.
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 | 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 | 8.29 | 7.89 | 7.18 |
Woodward Inc's interest coverage ratio has shown a generally positive trend over the past eight quarters, with a range of 5.27 to 8.64. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
The Q1 2024 interest coverage ratio of 8.64 indicates that Woodward Inc earned 8.64 times the amount of interest it needed to pay for that quarter. This represents a strong position, suggesting the company is comfortably covering its interest expenses with operating income.
Looking at the previous quarters, we see fluctuations in the interest coverage ratio, but overall the company has maintained a healthy level of coverage. The Q2 and Q3 2022 ratios were relatively stable at 7.21 and 7.23, respectively. However, there was a slight decline in Q4 2022 to 6.74 followed by fluctuations in the subsequent quarters.
The improvement in the interest coverage ratio in Q1 2024 compared to the previous quarters indicates a positive trend in the company's ability to meet its interest obligations. This trend suggests that Woodward Inc is managing its debt effectively and generating sufficient earnings to cover its interest expenses.
Overall, Woodward Inc's interest coverage ratios reflect a company that is generally in a favorable financial position in terms of meeting its interest payments. It is essential to continue monitoring this ratio to ensure the company's financial health and ability to manage its debt effectively.