Autoliv Inc

Autoliv's capital structure shows a debt-to-equity ratio of 0.87, indicating moderate leverage, while its liquidity position is assessed as medium. The company holds $408 million in cash and equivalents, but its long-term debt of $1.995 billion suggests a net cash-negative position after subtracting total debt. The price-to-book ratio of 3.78 and price-to-tangible-book ratio of 3.78 suggest the market is valuing the company's intangible assets at a premium. Profitability metrics show a return on equity of 6.05% and a return on assets of 1.74%, both below the industry median for auto parts firms. The gross margin of 18.23% (calculated from gross profit of $475 million on $2.605 billion in revenue) is in line with the sector, but the operating margin of 7.91% (calculated from operating income of $206 million) is below the median for the industry. Geographically, Autoliv's revenue is concentrated in North America and Europe, with no disclosed segment breakdown in the latest financials. The company's exposure to these regions may limit its growth potential in emerging markets. Looking ahead, revenue is expected to grow by 3.5% in the current fiscal year and 4.2% in the next, driven by increased demand for advanced driver assistance systems and safety technologies. However, the company's free cash flow of $26 million is weak, and capital expenditures of $294 million suggest ongoing investment in production capacity. The risk assessment highlights liquidity concerns, with a current ratio of 0.98 and a net cash-negative position. Dilution risk is low, but the company's high price-to-earnings ratio of 62.44 and EV/EBITDA of 49.83 suggest valuation concerns. Recent filings and transcripts indicate a focus on cost optimization and product innovation. The company has not disclosed any material events in the past quarter, but ongoing supply chain disruptions and inflationary pressures remain potential headwinds.