Comcast Corp (CMCSA)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.34 | 0.00 | 0.00 | 0.00 | 0.35 | 0.33 | 0.35 | 0.35 | 0.34 | 0.32 | 0.34 | 0.36 | 0.40 | 0.41 | 0.41 | 0.42 | 0.46 | 0.46 | 0.47 | 0.45 |
| Debt-to-capital ratio | 0.51 | 0.00 | 0.00 | 0.00 | 0.53 | 0.51 | 0.52 | 0.52 | 0.52 | 0.51 | 0.50 | 0.51 | 0.53 | 0.54 | 0.55 | 0.56 | 0.58 | 0.59 | 0.60 | 0.59 |
| Debt-to-equity ratio | 1.05 | 0.00 | 0.00 | 0.00 | 1.11 | 1.03 | 1.08 | 1.09 | 1.07 | 1.02 | 0.99 | 1.05 | 1.14 | 1.17 | 1.21 | 1.27 | 1.39 | 1.44 | 1.49 | 1.46 |
| Financial leverage ratio | 3.11 | 3.15 | 3.15 | 3.19 | 3.20 | 3.16 | 3.12 | 3.15 | 3.18 | 3.17 | 2.92 | 2.89 | 2.87 | 2.89 | 2.92 | 3.01 | 3.03 | 3.12 | 3.18 | 3.22 |
Comcast Corp's solvency ratios provide insights into the company's ability to meet its long-term debt obligations.
1. Debt-to-assets ratio: This ratio indicates the proportion of total assets financed by debt. Comcast's debt-to-assets ratio has been declining steadily from 0.45 in March 2020 to 0.35 by December 2023. The sudden drop to 0.00 in March 2024 and subsequent quarters suggests a significant decrease in debt relative to assets, signifying a potentially healthier balance sheet.
2. Debt-to-capital ratio: This ratio measures the proportion of total capital that is financed by debt. Comcast's debt-to-capital ratio exhibited a decreasing trend from 0.59 in March 2020 to 0.51 by December 2023, with another temporary drop to 0.00 in March 2024 and subsequent quarters. This reduction indicates a decreasing reliance on debt for financing the company's operations.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's total debt to its shareholders' equity. Comcast's debt-to-equity ratio decreased from 1.46 in March 2020 to 1.05 by March 2022, before rising slightly to 1.11 by December 2023. Similar to the other ratios, the sudden drop to 0.00 in March 2024 and subsequent quarters indicates a significant decrease in debt relative to equity.
4. Financial leverage ratio: This ratio assesses the extent to which a company utilizes debt to finance its operations. Comcast's financial leverage ratio remained relatively stable between 2.87 and 3.22 from December 2020 to December 2023, indicating consistent leverage levels. The ratio dropped significantly to 3.11 in December 2024, reflecting a potential reduction in overall debt burden.
Overall, the solvency ratios for Comcast Corp show a positive trend towards decreased reliance on debt financing and improved financial health, as indicated by decreasing debt ratios and leverage levels. The sudden drops to 0 in the debt-to-asset, debt-to-capital, and debt-to-equity ratios in March 2024 suggest a significant debt repayment or restructuring activity during that period. These favorable trends are indicative of enhanced solvency and financial strength for the company.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.73 | 5.84 | 5.98 | 6.06 | 6.08 | 6.05 | 3.87 | 3.61 | 3.50 | 3.44 | 5.53 | 5.65 | 5.54 | 5.71 | 4.95 | 4.53 | 4.03 | 3.91 | 4.21 | 4.23 |
Interest coverage is a financial ratio that measures a company's ability to pay the interest on its outstanding debt. A higher interest coverage ratio indicates a company is in a better position to meet its interest obligations.
Analyzing Comcast Corp's interest coverage ratio over the period from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The interest coverage ratio ranged from a low of 3.44 on September 30, 2022, to a high of 6.08 on December 31, 2023. Generally, a ratio above 3 is considered acceptable, as it indicates the company's earnings are sufficient to cover its interest payments.
Throughout the period, Comcast Corp maintained a relatively stable interest coverage ratio above 4, suggesting the company's earnings were consistently able to cover its interest expenses. However, the ratios showed some variability, indicating potential fluctuations in the company's profitability and ability to service its debt.
The trend in Comcast Corp's interest coverage ratio demonstrates the company's ability to manage its debt obligations effectively, with the ratio showing improvement towards the latter part of the period. Investors typically view a consistent and healthy interest coverage ratio positively, as it implies a lower risk of default due to insufficient earnings to cover interest expenses.