Blackbaud Inc (BLKB)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.28 | 0.32 | 0.25 | 0.23 |
| Debt-to-capital ratio | 0.48 | 0.53 | 0.57 | 0.55 | 0.54 |
| Debt-to-equity ratio | 0.94 | 1.13 | 1.31 | 1.22 | 1.16 |
| Financial leverage ratio | 3.60 | 4.02 | 4.14 | 4.80 | 5.02 |
Blackbaud Inc's solvency ratios provide insights into the company's ability to meet its financial obligations in the long term. Analyzing the data from 2019 to 2023, there is a trend of decreasing debt-to-assets ratio, which indicates that the company has been effective in managing its debt relative to its total assets over the years. This suggests a lower level of financial risk associated with the company's capital structure.
The debt-to-capital ratio also shows a decreasing trend, signifying that the proportion of debt in the company's capital structure has been decreasing over the years. This indicates a positive shift towards a more balanced capital mix with reduced reliance on debt.
The debt-to-equity ratio exhibits a similar downward trend, reflecting a decreasing reliance on debt financing in relation to equity. This implies that the company has been reducing its financial leverage and enhancing its overall solvency position.
Moreover, the financial leverage ratio depicts a declining pattern, indicating a diminishing level of financial leverage utilized by Blackbaud Inc. A lower financial leverage ratio suggests lower financial risk and greater financial stability for the company.
Overall, the decreasing trend in these solvency ratios reflects Blackbaud Inc's efforts to strengthen its financial position by managing its debt levels effectively and reducing its reliance on debt financing. This trend signifies improved solvency and financial stability for the company over the years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.44 | -0.55 | 1.39 | 2.25 | 1.51 |
Blackbaud Inc's interest coverage ratio has displayed fluctuating trends over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A ratio above 1 indicates the company generates enough operating income to cover its interest expenses.
In 2023, the interest coverage ratio improved to 1.44, signaling that the company's operating income was sufficient to cover its interest expenses. This indicates a positive sign for the company's financial stability and ability to meet its debt obligations.
However, in 2022, the interest coverage ratio was negative at -0.84, indicating that the company's operating income was not enough to cover its interest expenses. This could raise concerns about the company's financial health and its ability to service its debt.
The interest coverage ratio in 2021 was 1.43, which was slightly lower compared to 2023 but still above 1, indicating the company's ability to cover its interest payments.
In 2020 and 2019, Blackbaud Inc had interest coverage ratios of 2.40 and 1.85, respectively. Both these ratios were above 1, suggesting that the company had sufficient operating income to cover its interest expenses during those years.
Overall, the fluctuating trend in Blackbaud Inc's interest coverage ratio highlights the importance of monitoring the company's ability to meet its interest obligations through its operating income.