CACI International Inc (CACI)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.25 | 0.26 | 0.27 | 0.24 |
| Debt-to-capital ratio | 0.30 | 0.34 | 0.36 | 0.39 | 0.34 |
| Debt-to-equity ratio | 0.42 | 0.51 | 0.56 | 0.63 | 0.51 |
| Financial leverage ratio | 1.93 | 2.05 | 2.17 | 2.32 | 2.08 |
From the solvency ratios analysis of CACI International Inc over the past five years, we observe the following trends:
1. Debt-to-assets ratio: The trend shows a steady decrease from 0.27 in 2021 to 0.22 in 2024, indicating that the company has been reducing its reliance on debt to finance its assets. This suggests improved solvency and better financial stability.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also decreased over the years, from 0.39 in 2021 to 0.30 in 2024. This indicates that the company is relying less on debt capital in its overall capital structure, which is a positive sign for long-term solvency.
3. Debt-to-equity ratio: The trend of the debt-to-equity ratio fluctuates but shows an overall decreasing pattern from 0.63 in 2021 to 0.42 in 2024. This signifies that the company is reducing its debt relative to equity, which enhances its financial health and solvency position.
4. Financial leverage ratio: The financial leverage ratio displays fluctuations but remains relatively stable over the years. The ratio decreased from 2.32 in 2021 to 1.93 in 2024, indicating a reduction in financial leverage and improved solvency.
In summary, the solvency ratios of CACI International Inc demonstrate a positive trend towards lower debt dependency and improved financial stability over the years. The company's efforts to reduce debt levels relative to assets, capital, and equity ratios have led to enhanced solvency and reduced financial risk, reflecting a favorable financial position.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.18 | 6.77 | 11.89 | 13.54 | 8.16 |
The interest coverage ratio of CACI International Inc has shown a downward trend over the past five years. The ratio was 6.18 for the most recent fiscal year ending June 30, 2024, down from 6.77 in the previous year and significantly lower than the ratios of 11.89, 13.54, and 8.16 reported in the fiscal years 2022, 2021, and 2020, respectively.
A decreasing trend in the interest coverage ratio may indicate that the company's ability to cover its interest expenses with its operating income has weakened over time. It suggests that CACI International Inc may be facing challenges in generating sufficient earnings to service its interest obligations. Investors and creditors may view this trend with caution as a declining interest coverage ratio could signal increased financial risk for the company.
It is recommended that CACI International Inc management closely monitor its interest coverage ratio and take actions to improve profitability and cash flow generation to ensure the company's ability to meet its interest payment obligations in the future.