ANGI Homeservices Inc (ANGI)

The analysis of ANGI Homeservices Inc.'s solvency ratios, based on the available data, indicates a consistent pattern of minimal debt obligations over the observed period, extending from June 2020 through March 2025.

The Debt-to-Assets Ratio, Debt-to-Capital Ratio, and Debt-to-Equity Ratio are all recorded at zero across all reporting periods. This suggests that the company has maintained a debt-free capital structure during this timeframe, implying that liabilities do not constitute any portion of its total assets or capital structure. Such a position signifies exceptionally strong solvency without reliance on external debt financing.

In terms of leverage, the Financial Leverage Ratio demonstrates a gradual decline from 1.49 in June 2020 to approximately 1.72 in March 2025. While this ratio remains above 1, indicating that total assets are increasingly financed by equity rather than debt, the slight downward trend may reflect efforts to reduce leverage or a focus on maintaining a conservative capital structure.

Collectively, these ratios portray ANGI Homeservices Inc. as a company operating with negligible or no financial leverage, possessing a fully equity-funded balance sheet. The absence of debt-related ratios and the stable, low leverage ratios underscore a high degree of financial stability and low insolvency risk from a debt perspective.

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Coverage ratios

The analysis of ANGI Homeservices Inc.’s interest coverage ratios over the specified periods indicates significant fluctuations and an overall trend of improvement following a period of distress.

Initially, the company exhibited a relatively strong interest coverage ratio of 3.82 as of June 30, 2020, suggesting that earnings before interest and taxes (EBIT) were sufficient to cover interest expenses comfortably. However, this ratio declined sharply in subsequent quarters, dropping to 0.69 by September 30, 2020, and turning negative at -0.36 during the December 31, 2020, quarter. The negative ratio indicates that EBIT was insufficient to cover interest obligations during this period, reflecting increased financial strain.

From March 31, 2021, onward, the company continued to experience negative interest coverage ratios, with the most severe levels occurring between March 31, 2022, and December 31, 2022. Negative ratios ranging from approximately -5.30 to -6.34 during this period signal persistent challenges in generating sufficient earnings to meet interest expenses, suggesting a period of financial distress or significant impairment.

Starting in March 2024, the interest coverage ratio transitioned back into positive territory, reaching 0.48, and subsequently improving to 1.51 by June 30, 2024, and further to 2.84 by September 30, 2024. This upward trend reflects a notable improvement in earnings capacity relative to interest obligations and indicates a potential recovery phase.

By the end of the most recent period in March 2025, the ratio stabilizes at 2.64, indicating a more sustainable level of earnings coverage for interest expenses. The progressive increase from negative values to above unity underscores a substantial turnaround in the company's ability to service its interest obligations.

In summary, ANGI Homeservices Inc. experienced substantial deterioration in interest coverage ratios from mid-2020 through early 2023, implying increased financial risk and potential liquidity concerns during that period. However, from early 2024 onward, the ratios demonstrate a meaningful recovery, suggesting improved profitability and a reduced burden of interest payments, which bodes well for the company's financial stability and creditworthiness moving forward.