Box Inc (BOX)

Based on the provided data for Box Inc, the company's solvency ratios indicate a strong financial position in terms of its ability to meet its debt obligations.

- Debt-to-assets ratio: Box Inc's debt-to-assets ratio has consistently been at 0.00 over the years, indicating that the company has no debt in relation to its total assets. This signifies that the company has a low level of financial risk associated with its debt obligations.

- Debt-to-capital ratio: The debt-to-capital ratio for Box Inc was 0.00 for most of the years, except for 2023 where data was not provided. This suggests that the company relies very little on debt financing compared to its overall capital structure.

- Debt-to-equity ratio: Similar to the debt-to-capital ratio, the debt-to-equity ratio for Box Inc has also been reported at 0.00 for the years provided, except for 2023 where data was not available. This indicates that the company has a high level of equity financing relative to its debt, which is a positive sign for investors and creditors.

- Financial leverage ratio: Box Inc's financial leverage ratio, which measures the company's use of debt in its capital structure, fluctuated over the years. It was relatively high at 20.34 in 2024, indicating a significant level of financial risk due to higher leverage. However, in other years, such as 2021 and 2025, the financial leverage ratio was relatively lower, indicating a more conservative use of debt in the company's capital structure.

Overall, the solvency ratios for Box Inc suggest that the company has a strong financial position with minimal debt levels and a conservative approach to financing its operations.

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Coverage ratios

Interest coverage ratio, which is calculated as earnings before interest and taxes (EBIT) divided by interest expenses, provides insight into a company's ability to meet its interest obligations. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

- In January 31, 2021, Box Inc had an interest coverage ratio of -5.67, indicating that the company's EBIT was insufficient to cover its interest expenses. This suggests a potential financial risk as the company struggled to meet its interest obligations.

- By January 31, 2022, the interest coverage ratio slightly improved to -3.11 but still remained negative. This indicates that Box Inc continued to face challenges in generating enough earnings to cover its interest payments.

- However, the financial health of Box Inc improved significantly by January 31, 2023, with an interest coverage ratio of 15.14. This suggests a substantial improvement in the company's ability to cover its interest expenses, indicating a stronger financial position.

- In January 31, 2024, the interest coverage ratio decreased to 4.29, although it remained at a positive level. This indicates that Box Inc's ability to cover its interest payments had slightly declined but was still adequate.

- By January 31, 2025, the interest coverage ratio further improved to 13.02, indicating a strong ability to cover interest expenses. This suggests that Box Inc had continued to strengthen its financial position and was in a better position to meet its interest obligations.

Overall, the trend in Box Inc's interest coverage ratio shows fluctuations over the years, with significant improvements in recent years. It is essential for investors and stakeholders to monitor this ratio to assess the company's debt repayment capacity and financial stability.