Cable One Inc (CABO)
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 | 3.63 | 3.66 | 3.93 | 3.88 | 3.00 |
Cable One Inc. has consistently maintained a strong solvency position based on its solvency ratios over the analyzed period.
The Debt-to-assets ratio has remained at 0.00 throughout the years, indicating that the company has not relied on debt to finance its assets. This is a positive sign as it suggests the company has a solid asset base compared to its debt level.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also been consistently at 0.00 during the period, demonstrating that the company has not heavily leveraged its capital or equity with debt. This shows a healthy financial structure where the company's capital and equity funding are not burdened by significant debt obligations.
The Financial leverage ratio, which measures the company's total assets in relation to its equity, has shown some fluctuations but has generally stayed within a reasonable range between 3.00 and 3.93. This indicates that the company has a moderate level of financial leverage, which could imply efficiently utilizing debt to support its operations without taking on excessive risk.
Overall, based on these solvency ratios, Cable One Inc. appears to have a sound financial position with a low reliance on debt to support its operations and investments, which is a positive indicator of the company's financial health and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.77 | 3.26 | 3.90 | 4.19 | 5.29 |
Interest coverage is a significant financial ratio that indicates a company's ability to meet its interest payment obligations. For Cable One Inc, the interest coverage ratio has shown a declining trend from 5.29 in 2020 to 0.77 in 2024.
A higher interest coverage ratio is generally preferred as it implies that the company generates enough operating income to cover its interest expenses comfortably. In the case of Cable One Inc, the decreasing trend in the interest coverage ratio raises concerns about the company's ability to meet its interest payments in the future.
The declining trend in the interest coverage ratio could be a result of increasing interest expenses relative to operating income or a decrease in operating income itself. It is important for investors and stakeholders to closely monitor this ratio as a low interest coverage ratio may indicate financial distress and increased risk for the company.
Efforts should be made by Cable One Inc to improve its interest coverage ratio, either by increasing operating income or reducing interest expenses, in order to enhance its financial stability and ability to service its debt obligations effectively.