Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Paying user area
Try for free
Trane Technologies plc pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Analysis of Revenues
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Trane Technologies plc for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Solvency Ratios (Summary)
Trane Technologies plc, solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibited a general increase from 0.77-0.81 levels during 2019 to a peak near 0.97 in the first quarter of 2020, coinciding with the onset of economic uncertainties. Following this peak, the ratio gradually declined and stabilized around 0.75 to 0.85 between late 2020 and early 2023, suggesting a modest reduction in reliance on equity financing relative to debt after the initial pandemic impact.
- Debt to Capital Ratio
- This ratio showed a similar pattern, rising from approximately 0.43-0.45 in 2019 to nearly 0.49 in early 2020, then receding back to the 0.43-0.46 range through 2023. The relatively narrow fluctuation range indicates consistent capital structure management with some increased leverage during early 2020, but overall financial policy remained stable.
- Debt to Assets Ratio
- The debt to assets ratio moved up slightly from about 0.27-0.28 in 2019 to roughly 0.31-0.32 in early 2020, reflecting increased indebtedness relative to assets. Afterward, it reverted to around 0.27 consistently through 2023, highlighting an effective balance sheet adjustment and stable asset base maintenance post-2020.
- Financial Leverage
- Financial leverage ratios were fairly consistent, fluctuating between 2.8 and 2.9 in 2019, rising to just over 3.0 at several points between mid-2022 and late 2022, before dropping slightly to about 2.97 in early 2023. This suggests a cautious increase in asset utilization financed by debt, with a slight moderation towards the end of the period.
- Interest Coverage Ratio
- Interest coverage demonstrated a declining trend from 9.77 in early 2019 to a trough of 6.18 by the end of 2020, indicating reduced ability to cover interest expenses during the period likely affected by economic disruptions. From 2021 onwards, there was a marked recovery and steady improvement in coverage ratios, reaching a peak of 10.91 in the first quarter of 2023, signaling stronger earnings relative to interest obligations and improved financial health.
Debt Ratios
Coverage Ratios
Debt to Equity
Trane Technologies plc, debt to equity calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Short-term borrowings and current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt,excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to equity = Total debt ÷ Total Trane Technologies plc shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the quarters reveals several notable trends in the debt levels, shareholders’ equity, and the debt-to-equity ratio of the company.
- Total Debt
- The total debt demonstrates a moderate declining trend from March 2019 to March 2023. Starting at approximately 5.6 billion USD in early 2019, the debt oscillates slightly but generally decreases, reaching around 4.83 billion USD by the first quarter of 2023. This reduction is relatively gradual, with a more evident decrease observed from March 2020 onwards, suggesting a strategic effort to reduce leverage or manage debt levels.
- Total Shareholders’ Equity
- Shareholders’ equity shows greater fluctuations within the same period. Initially rising from about 6.89 billion USD in March 2019 to a peak near 7.27 billion USD at the end of 2019, it sharply declines in the first quarter of 2020 to approximately 5.77 billion USD. This decline aligns with the early impact of economic challenges during that period. Subsequent quarters exhibit a recovery trend with equity gradually increasing to over 6 billion USD by early 2023, though it remains below the pre-2020 peak. The recovery suggests improvement in retained earnings or asset values.
- Debt to Equity Ratio
- The debt-to-equity ratio follows a pattern influenced by the movements in both debt and equity. Starting below 0.85 throughout 2019, it rises sharply to nearly 0.97 in the first quarter of 2020, indicating increased leverage relative to equity. This spike corresponds with the abrupt decline in equity previously mentioned. After this peak, the ratio steadily declines and stabilizes around 0.8 by 2023, reflecting the combined effects of debt reduction and equity recovery. The ratio levels suggest a balanced capital structure being maintained over recent periods.
Debt to Capital
Trane Technologies plc, debt to capital calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Short-term borrowings and current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt,excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding the company's debt and capital structure over the reported periods.
- Total Debt
-
Total debt decreased gradually from about 5.6 billion US dollars at the end of the first quarter of 2019 to approximately 4.83 billion US dollars by the first quarter of 2023. This decline was fairly steady, with a significant drop observed between the fourth quarter of 2019 and the second quarter of 2020, coinciding with a reduction from about 5.57 billion to 5.27 billion US dollars. The debt level remained relatively stable around the 4.8 billion mark from mid-2021 to early 2023.
- Total Capital
-
Total capital showed a more fluctuating pattern over the same period. Initially, it rose slightly from approximately 12.5 billion US dollars in early 2019 to peak around 12.88 billion US dollars in the second quarter of 2019. However, after the first quarter of 2020, total capital declined more sharply to about 11.35 billion US dollars, with some volatility but a general downward trend reaching roughly 10.87 billion US dollars by the first quarter of 2023. The overall trend indicates a reduction in total capital over the observed four-year span.
- Debt to Capital Ratio
-
The debt to capital ratio demonstrated relative stability with minor oscillations throughout the analyzed quarters. Starting at 0.45 in early 2019, it peaked at 0.49 in the first quarter of 2020, likely reflecting the combined impact of reduced capital and relatively stable high debt levels during that period. Subsequently, the ratio declined and stabilized around 0.44 to 0.46 from 2021 onwards, ending at 0.44 by the beginning of 2023. This suggests a modest improvement in the balance between debt and capital, indicative of a slightly strengthened capital structure in recent quarters.
In summary, the company's total debt has decreased steadily, while total capital has exhibited more volatility with a gradual decline. Despite these changes, the debt to capital ratio has remained fairly consistent, implying a relatively stable leverage position over the assessed timeframe.
Debt to Assets
Trane Technologies plc, debt to assets calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Short-term borrowings and current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt,excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates several key trends in the company's leverage and asset base over the observed periods.
- Total Debt
- Total debt experienced a moderate fluctuation from March 2019 to March 2023. Initially, debt increased slightly from 5,600,900 thousand US dollars in March 2019 to a peak around mid-2019 at approximately 5,749,800 thousand. Following that peak, a gradual decline is evident, with a noticeable drop during 2020 wherein the debt reduced to about 5,268,100 thousand by June 2020. From that point onward, the debt remained relatively stable, with minor decreases leading to a value of approximately 4,830,100 thousand by March 2023. This reflects a sustained effort to manage or reduce debt levels over the longer term.
- Total Assets
- Total assets showed more variability throughout the period. From nearly 19,781,000 thousand US dollars in March 2019, assets increased to a peak of about 20,667,600 thousand by June 2019, followed by minor oscillations and a significant decline in early 2020, falling to around 17,235,600 thousand in June 2020. After this, total assets generally exhibited a slight upward trend, fluctuating within the 17,600,000 to 18,000,000 thousand range from mid-2020 through early 2023, reaching approximately 17,897,400 thousand by March 2023. The initial sharp decline during early 2020 suggests an impact likely linked to external economic factors, with asset levels stabilizing thereafter.
- Debt to Assets Ratio
- The ratio of debt to assets indicates the company's leverage relative to its asset base. This ratio was stable at around 0.27 to 0.28 from 2019 to early 2020, then rose to approximately 0.32 in March 2020, reflecting an increase in leverage likely caused by the decrease in total assets while debt levels remained relatively high. Subsequently, the ratio decreased and stabilized close to 0.27 from the latter half of 2020 through March 2023. This stabilization suggests improved balance between debt and assets, consistent with managed debt reduction and recovery or stabilization of asset levels.
Overall, the data reflects a temporary impact around early 2020 that affected total assets and increased leverage, followed by a period of relative stabilization. Debt reduction efforts and asset management appear to have contributed to returning the leverage ratio to earlier levels. This pattern indicates a resilient financial position with steady control over debt relative to assets in recent quarters.
Financial Leverage
Trane Technologies plc, financial leverage calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Financial leverage = Total assets ÷ Total Trane Technologies plc shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- The total assets exhibited fluctuation over the analyzed period. Initially, there was an upward trend from March 31, 2019, reaching a peak near the end of 2019. Subsequently, a notable decline occurred in early 2020, likely influenced by external economic factors, reaching the lowest levels around mid-2020. From the latter part of 2020 through early 2023, total assets showed relative stability with minor fluctuations, maintaining values near the 17.6 to 18.1 billion USD range, suggesting a period of consolidation and steady asset base.
- Total shareholders’ equity
- Shareholders' equity demonstrated a strong decline starting in the first quarter of 2020, reflecting a substantial decrease from roughly 7.3 billion USD to below 6.5 billion USD by the end of 2021. After this drop, the equity marginally decreased further through mid-2022 before gradually recovering by early 2023, though it did not return to pre-2020 levels. This pattern suggests the company might have faced significant challenges impacting equity during 2020, followed by a cautious recovery phase.
- Financial leverage ratio
- The financial leverage ratio varied moderately throughout the periods analyzed. The ratio increased slightly at the start of 2020, peaking at just over 3.0 during the middle of 2022, indicating a rise in the company’s debt relative to equity. This elevated leverage is consistent with the observed decline in shareholders' equity and reduction in total assets during that timeframe. Subsequently, the ratio slightly declined but remained near 3.0 by the first quarter of 2023, suggesting a maintained level of financial leverage higher than pre-2020 levels.
Interest Coverage
Trane Technologies plc, interest coverage calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net earnings (loss) attributable to Trane Technologies plc | |||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
| Less: Discontinued operations, net of tax | |||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Interest coverage
= (EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022
+ EBITQ2 2022)
÷ (Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022
+ Interest expenseQ2 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding earnings and interest metrics over the examined periods.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figure exhibits considerable fluctuations throughout the quarters. Initially, there is a peak in the second quarter of 2019, followed by a decline toward the end of that year. The first half of 2020 shows a sharp decrease in EBIT, coinciding with global economic disruptions during that period. Subsequently, there is a recovery trend starting in mid-2020, with increasing EBIT values reaching a higher plateau in 2022. The peak EBIT values occur in the third quarter of 2022, after which there is a mild decline moving into the first quarter of 2023.
- Interest Expense
- Interest expense remains relatively stable over the entire period, with only minor variations in absolute terms. This stability indicates consistent borrowing costs or debt levels, with values ranging narrowly around 55,000 to 65,000 thousand US dollars. No significant upward or downward trends are observable in this expense item.
- Interest Coverage Ratio
- The interest coverage ratio shows a general upward trend over the period. Starting from a high value in early 2019, it experiences a decline through mid-2020, aligning with the reduced EBIT values observed during that time. After mid-2020, the ratio improves markedly, reflecting stronger ability to cover interest expenses from earnings. By early 2023, the ratio reaches its highest points, nearing 11 times interest coverage, indicating enhanced financial strength and lower relative interest risk.
Overall, the data suggests that the company's operational profitability was negatively impacted during early 2020 but subsequently recovered and even improved beyond previous levels by 2022. Interest expenses remain stable, and the interest coverage ratio's improvement underscores the stronger earnings capacity relative to debt obligations in recent quarters.