Cable One Inc (CABO)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 3.66 | 3.93 | 3.88 | 3.00 | 3.75 |
The solvency ratios of Cable One Inc over the past five years provide insights into the company's ability to meet its long-term financial obligations and overall financial risk.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Cable One Inc's debt-to-assets ratio has shown some fluctuations over the years, ranging from 0.49 to 0.55. A lower ratio suggests less reliance on debt to fund its assets, while a higher ratio may indicate higher financial risk.
2. Debt-to-capital ratio: The debt-to-capital ratio measures the percentage of a company's capital that comes from debt. Cable One Inc's ratio has varied between 0.59 and 0.68 during the period under review. A lower ratio indicates a lower reliance on debt for capital structure, while a higher ratio implies higher leverage and financial risk.
3. Debt-to-equity ratio: This ratio reflects the proportion of a company's financing that comes from debt relative to equity. Cable One Inc's debt-to-equity ratio has ranged from 1.46 to 2.17. A higher ratio signifies higher financial risk as the company has a larger amount of debt compared to equity.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which the company relies on debt to finance its operations. Cable One Inc's financial leverage ratio has fluctuated between 3.00 and 3.93. A higher ratio indicates higher financial risk due to a greater reliance on debt financing.
Overall, Cable One Inc has shown varying levels of debt utilization and financial leverage over the years, indicating fluctuations in its solvency position. It is important for investors and stakeholders to carefully monitor these ratios to assess the company's ability to meet its debt commitments and manage financial risk effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.10 | 3.62 | 3.98 | 6.17 | 4.26 |
The interest coverage ratio for Cable One Inc has shown a general declining trend over the past five years. The ratio decreased from 5.26 in 2020 to 2.85 in 2023. This indicates that the company's ability to cover its interest expenses from operating income has weakened over time. A high interest coverage ratio, such as seen in 2020, suggests that the company is better positioned to meet its interest obligations with its earnings. However, a lower ratio, as observed in 2023, may imply that the company's financial health could be at risk if its earnings continue to decline relative to its interest expenses. It is important for investors and creditors to monitor this trend closely as it could signal potential financial distress for Cable One Inc in the future.