Concentrix Corporation (CNXC)

Concentrix Corporation's solvency ratios reflect a consistently strong financial position over the five-year period from November 30, 2020, to November 30, 2024.

The Debt-to-assets ratio remained at 0.00 throughout this period, indicating that the company financed its assets without relying on debt. This suggests a low financial risk associated with debt obligations.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also maintained a stable 0.00, implying that the company used minimal debt to fund its operations compared to its equity and capital. This indicates a conservative financing approach and a solid equity base to support its operations.

The Financial leverage ratio, on the other hand, varied slightly but generally stayed within a range of 1.93 to 3.01. This ratio measures the extent to which the company's operations are funded by debt, showing that Concentrix Corporation's leverage increased in 2022 and 2024 compared to 2020 and 2021. However, the overall level of financial leverage remains moderate, indicating a balanced capital structure that combines equity and debt effectively.

Overall, Concentrix Corporation's solvency ratios suggest that it has maintained a robust financial position with minimal reliance on debt to support its operations, demonstrating financial stability and efficient capital management strategies.

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Coverage ratios

Concentrix Corporation's interest coverage ratio has shown fluctuations over the past five years. In November 2020, the interest coverage ratio was 6.26, indicating that the company generated operating income 6.26 times more than its interest expenses, which suggests a moderate ability to cover interest obligations.

The ratio saw a significant improvement in November 2021, reaching 24.07, indicating a substantial increase in the company's ability to cover interest costs. This suggests that Concentrix Corporation had a strong ability to meet its interest payments from its operating income during that period.

However, there was a decline in the interest coverage ratio in November 2022, dropping to 9.58. Although this figure still indicates a relatively healthy ability to cover interest expenses, it was lower compared to the previous year.

In November 2023, the interest coverage ratio further decreased to 3.29, indicating a potential strain on the company's ability to cover its interest payments with operating income. This sharp decline may raise concerns about Concentrix Corporation's financial health and ability to meet its debt obligations using its earnings.

The trend continued in November 2024, with the interest coverage ratio falling to 1.93. This low ratio suggests that Concentrix Corporation may be at risk of facing challenges in meeting its interest payments with its operating income, potentially indicating financial difficulties.

Overall, Concentrix Corporation's interest coverage ratio has experienced fluctuations, with periods of strong and weak coverage. Investors and stakeholders may want to closely monitor this ratio to assess the company's financial stability and ability to manage its debt obligations effectively.