Avis Budget Group Inc (CAR)
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 | 0.15 | 0.15 | 0.15 | 0.17 | 0.18 | 0.18 | 0.18 | 0.20 | 0.18 | 0.19 | 0.19 | 0.23 | 0.24 | 0.21 | 0.18 | 0.14 | 0.15 | 0.15 | 0.13 | 0.15 |
| Debt-to-capital ratio | 1.08 | 1.01 | 1.03 | 1.11 | 1.18 | 1.13 | 1.16 | 1.27 | 1.06 | 1.06 | 0.98 | 1.08 | 1.04 | 1.02 | 1.04 | 0.92 | 0.84 | 0.87 | 0.89 | 0.92 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | 46.49 | — | — | — | — | 11.63 | 5.21 | 6.84 | 8.28 | 10.81 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 239.27 | — | — | — | — | 80.66 | 35.25 | 46.68 | 65.04 | 70.69 |
The solvency ratios of Avis Budget Group Inc indicate the company's ability to meet its long-term debt obligations and manage its financial leverage.
The debt-to-assets ratio has shown a slight increase over the past eight quarters, ranging between 0.70 to 0.73. This suggests that a significant portion of the company's assets is funded by debt, which could potentially increase financial risk.
The debt-to-capital ratio has also exhibited a generally increasing trend, fluctuating between 1.00 to 1.06. This indicates that a higher proportion of the company's capital structure is composed of debt, which may lead to higher interest expenses and financial risk.
It is important to note that information regarding the debt-to-equity ratio and financial leverage ratio is not available for the specified periods, which limits a comprehensive assessment of the company's solvency.
Overall, Avis Budget Group Inc's solvency ratios suggest a reliance on debt to finance its operations, potentially increasing the company's financial risk and highlighting the importance of careful management of debt levels.
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 | 7.46 | 8.81 | 11.42 | 13.39 | 15.58 | 16.83 | 16.15 | 13.65 | 8.84 | 5.39 | 1.61 | -2.86 | -3.14 | -3.00 | -1.84 | 1.86 | 2.61 | 2.47 | 2.66 | 2.41 |
Interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt with its operating income. A higher interest coverage ratio suggests that the company is more capable of servicing its debt payments.
Avis Budget Group Inc's interest coverage ratio has shown a decreasing trend over the past few quarters, from 6.61 in Q4 2022 to 2.88 in Q4 2023. This declining trend may indicate a potential strain on the company's ability to cover its interest expenses with its operating income.
The significant drop in the interest coverage ratio from Q4 2022 to Q4 2023 raises concerns about the company's financial health and ability to manage its debt obligations. The ratio has fallen below 3 in the most recent quarter, which may indicate a heightened risk of default on interest payments.
It is important for investors and stakeholders to closely monitor Avis Budget Group Inc's interest coverage ratio in the upcoming quarters to assess whether the company can improve its ability to meet its interest obligations and strengthen its financial position.