Agilysys Inc (AGYS)

Based on the solvency ratios provided for Agilysys Inc, we can see that the company has consistently maintained a very low level of debt relative to its assets, capital, and equity over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been at 0.00, indicating that the company operates with minimal reliance on debt financing.

However, the financial leverage ratio has shown some variability over the same period, ranging from 1.48 to 2.38. This ratio measures the proportion of a company's assets that are financed by debt compared to equity. The decreasing trend in the financial leverage ratio over the years suggests that Agilysys Inc has been relying less on debt to fund its operations and investments, which can be a positive sign for solvency and financial stability.

Overall, the solvency ratios indicate that Agilysys Inc has maintained a strong financial position with a conservative approach to debt management, which can help mitigate financial risks and ensure long-term stability.

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Coverage ratios

The interest coverage ratio for Agilysys Inc has shown significant improvement over the years, as indicated by the data provided. In March 2020, the interest coverage ratio was -3,761.89, reflecting a situation where the company's operating income was insufficient to cover its interest expenses, posing a significant risk in terms of debt obligations.

However, there was a notable improvement in the interest coverage ratio in March 2021, where it stood at -1,059.45. Although still negative, the ratio showed a substantial increase compared to the previous year, indicating that the company's operating income was moving in a more favorable direction in relation to its interest expenses.

By March 2022, the interest coverage ratio had significantly improved to 543.58, signaling a positive shift in the company's ability to cover its interest costs with operating income. This marked improvement suggests that Agilysys Inc was in a much stronger financial position in terms of servicing its debt obligations.

Unfortunately, there is missing data for March 2023 and March 2024, making it challenging to provide a more complete analysis of the trend. However, based on the available data, it is evident that Agilysys Inc has made substantial progress in enhancing its interest coverage ratio, which is essential for assessing the company's financial health and ability to meet its debt obligations.