Avis Budget Group Inc (CAR)
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 | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
Avis Budget Group Inc's solvency ratios show a consistent and strong position in terms of debt management. The Debt-to-assets ratio remained at 0.00 across all years, indicating that the company's total debt is effectively zero compared to its total assets. This suggests a low financial risk and a healthy balance sheet structure.
The Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio were not provided in the data, which makes it challenging to analyze the company's capital structure and leverage position in more detail. However, given the Debt-to-assets ratio being at 0.00 consistently, it can be inferred that Avis Budget Group Inc maintains a conservative approach to debt financing and likely has a strong financial position in terms of solvency.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -6.35 | 7.47 | 17.34 | 10.34 | -1.68 |
Based on the provided data for Avis Budget Group Inc's interest coverage ratio over the five-year period, we can observe significant fluctuations in the company's ability to cover its interest expenses.
- As of December 31, 2020, the interest coverage ratio stood at -1.68, indicating that the company's operating income was insufficient to cover its interest obligations, suggesting a potential financial risk.
- However, there was a notable improvement in the following years, with the interest coverage ratio increasing to 10.34 as of December 31, 2021, and further improving to 17.34 by December 31, 2022. These improvements suggest a stronger ability to meet interest expenses comfortably.
- By December 31, 2023, the interest coverage ratio decreased to 7.47, indicating a slight decline in the company's ability to cover interest payments compared to the previous year.
- The ratio took a significant downturn by December 31, 2024, standing at -6.35. A negative interest coverage ratio suggests that the company's operating income was insufficient to cover interest expenses, possibly indicating financial distress.
Overall, variations in the interest coverage ratio over the years suggest fluctuations in the company's ability to meet its interest obligations, highlighting the importance of monitoring financial performance and managing debt effectively.