Blackline Inc (BL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.09 | 8.05 | 17.37 | 5.59 | 2.64 |
Blackline Inc's solvency ratios indicate a strong financial position with consistently low debt levels over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00% from 2020 to 2024, reflecting that the company's assets and capital are primarily funded through equity rather than debt. This suggests a conservative approach to financing and a lower risk of financial distress.
The Financial leverage ratio, on the other hand, shows fluctuations over the years, with a peak in 2022 at 17.37%, indicating higher financial leverage during that period. However, the ratio decreased in subsequent years, reaching 4.09% in 2024. Overall, the downward trend in the financial leverage ratio signifies that the company reduced its reliance on debt financing and improved its financial stability.
In conclusion, Blackline Inc's solvency ratios demonstrate a sound financial position with minimal debt exposure and a decreasing trend in financial leverage, which indicates a healthy balance between debt and equity financing.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 15.24 | 11.26 | -7.10 | -0.71 | -0.66 |
The interest coverage ratio is a critical financial ratio that indicates a company's ability to cover its interest expenses with its operating income. Looking at Blackline Inc's interest coverage over the past few years, the trend is fluctuating significantly.
In December 2020 and December 2021, Blackline Inc had negative interest coverage ratios of -0.66 and -0.71 respectively, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. This raises concerns about the company's financial health and repayment capability.
However, there was a significant improvement in the interest coverage ratio in December 2022, where it improved to -7.10. While still negative, the ratio showed some progress compared to the previous years.
The financial picture changed dramatically in December 2023 and December 2024, with interest coverage ratios of 11.26 and 15.24 respectively. These positive ratios signify that Blackline Inc's operating income comfortably covered its interest expenses during these periods, indicating a strengthened financial position and a reduced risk of default on interest payments.
Overall, Blackline Inc's interest coverage ratio has shown both weaknesses and improvements over the years. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations and manage financial risks effectively.