Cable One Inc (CABO)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.66 | 3.83 | 3.89 | 3.95 | 3.93 | 3.65 | 3.62 | 3.59 | 3.88 | 3.99 | 4.06 | 3.39 | 3.00 | 2.76 | 2.83 | 4.07 | 3.75 | 3.37 | 3.34 | 3.41 |
Cable One Inc's solvency ratios show its ability to meet its long-term financial obligations and the extent to which the company relies on debt financing.
The Debt-to-assets ratio has been relatively stable around 0.55 to 0.56, indicating that approximately 55% to 56% of the company's assets are financed by debt. This ratio suggests that Cable One Inc has a moderate level of leverage and is not overly reliant on debt to fund its operations.
The Debt-to-capital ratio has also remained steady, ranging from 0.66 to 0.69 over the quarters. This ratio shows that about 66% to 69% of the company's capital structure is made up of debt, with the rest funded by equity. While this ratio indicates a moderate level of debt usage, it is important for the company to monitor any significant increases that could lead to higher financial risk.
The Debt-to-equity ratio has shown some fluctuations, but generally trending upwards from 2.02 to 2.19. This indicates that the company's debt levels have been increasing relative to its equity, reaching a peak in Q1 2023. A higher Debt-to-equity ratio suggests higher financial risk and could potentially make the company less attractive to investors.
The Financial leverage ratio has also been on the upward trend, indicating that the company's reliance on debt to finance its assets and operations has been increasing. This ratio has moved from 3.59 to 3.95 over the past year, highlighting a higher level of financial leverage that Cable One Inc is taking on.
Overall, while Cable One Inc's solvency ratios show a moderate level of leverage, the increasing trend in the Debt-to-equity ratio and Financial leverage ratio warrants close monitoring to ensure the company maintains a healthy balance between debt and equity financing.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.10 | 2.07 | 2.32 | 2.53 | 3.62 | 4.77 | 4.73 | 4.87 | 3.98 | 4.82 | 5.55 | 5.98 | 6.17 | 5.23 | 5.09 | 4.57 | 4.26 | 4.21 | 4.00 | 4.34 |
Interest coverage is a key financial ratio that indicates the ability of Cable One Inc to meet its interest obligations using its operating income. A higher interest coverage ratio signifies a company's stronger ability to cover its interest expenses.
Based on the provided data:
- The interest coverage ratio for Cable One Inc has been consistently above 2.0 for each quarter, indicating that the company's operating income is sufficient to cover its interest expenses.
- There is a noticeable decreasing trend in the interest coverage ratio over the quarters, moving from 4.16 in Q1 2022 to 2.85 in Q4 2023.
- Despite the decreasing trend, the interest coverage ratio remains above 2.0, suggesting that the company's operating income continues to provide a comfortable cushion to cover its interest payments.
- While a higher interest coverage ratio is generally preferred by investors and lenders as it represents lower financial risk, a ratio above 2.0 is considered acceptable in most industries.
In conclusion, Cable One Inc's interest coverage ratio indicates that the company has been able to comfortably meet its interest obligations with its operating income. However, the decreasing trend in the ratio warrants monitoring to ensure the company maintains a healthy financial position in the future.