Aspen Technology Inc (AZPN)
Solvency ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.10 | 1.10 | 1.11 | 1.10 | 1.11 | 1.11 | 1.13 | 1.14 | 1.14 | 0.00 |
Aspen Technology Inc has consistently maintained a very low level of leverage as evidenced by its solvency ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at 0.00 across multiple periods, indicating that the company has not relied on debt to finance its operations. This suggests a conservative financial strategy and a strong financial position with minimal financial risk.
The financial leverage ratio for Aspen Technology Inc has shown slight fluctuations over the periods, ranging from 1.10 to 1.14. This ratio measures the extent to which a company's operations are funded by debt, with a lower ratio indicating lower financial risk. Despite the fluctuations, the ratios have generally been relatively low, indicating that the company is operating with a moderate level of financial leverage.
Overall, Aspen Technology Inc's solvency ratios point towards a healthy financial position with minimal reliance on debt, which may provide the company with financial stability and flexibility to pursue growth opportunities in the future.
Coverage ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|---|---|
| Interest coverage | — | -5.10 | -5.35 | -4.37 | -3.80 | -5.54 | -4.02 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio signifies a stronger ability to cover interest expenses with operating income.
Looking at the data for Aspen Technology Inc from December 2022 to June 2024, we can see that the interest coverage ratio has been consistently negative. This indicates that the company's operating income has not been sufficient to cover its interest expenses during these periods.
The trend shows a decline in the interest coverage ratio from -4.02 in December 2022 to -5.10 in June 2024. A negative interest coverage ratio is a concerning sign as it suggests that the company may be at risk of defaulting on its debt obligations if the situation persists.
It is important for Aspen Technology Inc to closely monitor and improve its interest coverage ratio to ensure financial stability and avoid potential financial distress. The management should focus on enhancing profitability and operational efficiency to generate higher earnings that can adequately cover interest expenses in the future.