Blackbaud Inc (BLKB)
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 | 17.58 | 3.60 | 4.02 | 4.14 | 4.80 |
Based on the provided data for Blackbaud Inc, the solvency ratios indicate a consistently low level of debt relative to the company's assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all stand at 0.00 for each year from 2020 to 2024. This suggests that the company has no debt compared to its total assets, capital, and equity, which is a positive sign of strong financial stability and low financial risk.
However, the Financial leverage ratio shows some fluctuations over the years, indicating changes in the company's leverage position. The ratio was relatively high at 4.80 in 2020, decreased to 4.14 in 2021, and further decreased to 4.02 in 2022, suggesting a decreasing reliance on debt financing during these years. However, in 2023, the ratio dropped significantly to 3.60, indicating a much lower level of leverage. Then, it spiked to 17.58 in 2024, signaling a sudden increase in financial leverage, which may require further investigation to understand the underlying reasons for this significant change. Overall, the solvency ratios indicate that Blackbaud Inc has maintained a strong financial position with a low level of debt relative to its financial resources, but the fluctuation in the Financial leverage ratio in 2024 suggests a potential increase in leverage that requires management attention.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -4.60 | 1.44 | -0.40 | 1.19 | 2.03 |
The interest coverage ratio of Blackbaud Inc has shown fluctuations over the years. As of December 31, 2020, the company had an interest coverage ratio of 2.03, indicating that it was able to cover its interest expenses comfortably. However, by December 31, 2021, the ratio declined to 1.19, signaling a decrease in the company's ability to cover its interest payments. The ratio further deteriorated to -0.40 by December 31, 2022, suggesting that Blackbaud Inc had insufficient earnings to cover its interest expenses.
Subsequently, the interest coverage ratio improved to 1.44 by December 31, 2023, implying a better ability to cover interest costs compared to the previous year. However, by December 31, 2024, the ratio plummeted to -4.60, indicating a significant decline in the company's ability to meet its interest obligations with its earnings.
Overall, the trend in Blackbaud Inc's interest coverage ratio shows variability, with periods of adequate coverage followed by instances of weakening financial health in terms of meeting interest payments. Investors and creditors may need to closely monitor future financial performance to assess the company's ability to manage its debt burden effectively.