Olympic Steel Inc (ZEUS)

The solvency ratios of Olympic Steel Inc. reflect the company's ability to meet its long-term financial obligations and manage its capital structure efficiently.

1. Debt-to-assets ratio: This ratio indicates the proportion of total assets financed by debt. Olympic Steel's debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.19 in 2023 and 2022 to 0.32 in 2021. A lower debt-to-assets ratio suggests a lower level of financial risk and indicates that a significant portion of the company's assets are funded by equity.

2. Debt-to-capital ratio: The debt-to-capital ratio shows the percentage of the company's capital structure that is funded by debt. Olympic Steel's debt-to-capital ratio has fluctuated over the years, with a range from 0.24 in 2022 to 0.44 in 2021. A lower debt-to-capital ratio indicates a higher proportion of equity financing, which can be favorable for long-term financial stability.

3. Debt-to-equity ratio: The debt-to-equity ratio reflects the company's reliance on debt versus equity for financing its operations. Olympic Steel's debt-to-equity ratio has shown variability, with a low of 0.32 in 2022 and a high of 0.77 in 2021. A lower debt-to-equity ratio signifies a lower level of financial risk and indicates that the company has a larger portion of equity financing relative to debt.

4. Financial leverage ratio: The financial leverage ratio measures the extent to which a company uses debt to finance its assets. Olympic Steel's financial leverage ratio has fluctuated over the years, with a range from 1.73 in 2022 to 2.41 in 2021. A higher financial leverage ratio indicates a higher level of financial risk as the company relies more on debt to fund its operations.

Overall, Olympic Steel Inc. has maintained a relatively stable solvency position over the years, with fluctuations in certain ratios reflecting changes in the company's capital structure and financing decisions. Investors and stakeholders may view the company's solvency ratios as indicators of its ability to manage debt levels and financial stability effectively.

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Coverage ratios

Due to the absence of specific data for interest expense and EBIT (earnings before interest and taxes) in the table provided, it is not possible to calculate or analyze the interest coverage ratio for Olympic Steel Inc. for the years 2019 to 2023. Interest coverage ratio is a key financial metric that indicates a company's ability to pay interest on its outstanding debt obligations from its operating income. For a comprehensive assessment of the company's financial performance and leverage capacity, it would be necessary to obtain the relevant financial figures to calculate the interest coverage ratio accurately.