Concentrix Corporation (CNXC)

The solvency ratios for Concentrix Corp. provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, increased from 0.33 in 2022 to 0.40 in 2023, indicating a higher reliance on debt to fund its assets. However, this ratio has fluctuated over the past five years, reaching a peak of 0.43 in 2019.

The debt-to-capital ratio, which assesses the percentage of the company's capitalization that comes from debt, also exhibited an upward trend, rising from 0.45 in 2022 to 0.54 in 2023. This suggests that a larger portion of the company's capital structure is being financed by debt.

The debt-to-equity ratio, which reflects the extent to which the company is financed through debt relative to shareholders' equity, increased from 0.83 in 2022 to 1.19 in 2023. This rising trend indicates that the company's reliance on debt in relation to equity has intensified.

Furthermore, the financial leverage ratio, which measures the extent to which the company's operations are funded by equity compared to debt, also saw an increase from 2.47 in 2022 to 3.01 in 2023. This implies that the company's level of financial leverage has amplified, signaling a greater degree of risk associated with potential fluctuations in earnings.

In summary, Concentrix Corp.'s solvency ratios demonstrate an increasing reliance on debt as a source of financing, potentially raising concerns about the company's ability to manage its long-term financial obligations and sustain its financial stability.

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Coverage ratios

The interest coverage ratio for Concentrix Corp. has fluctuated over the past five years. In 2023, the interest coverage ratio was 3.29, indicating the company's ability to meet its interest obligations was lower compared to the previous year. However, in 2022, the interest coverage ratio was notably higher at 9.14, signifying a stronger capacity to cover interest expenses. The ratio reached its peak in 2021 at 24.84, suggesting a significant improvement in the company's ability to pay interest on its outstanding debt. In 2020, the interest coverage ratio was 6.39, demonstrating a moderate ability to meet interest payments. Finally, in 2019, the ratio was at 3.19, indicating a similar level of interest coverage compared to 2023. Overall, the trend in the interest coverage ratio shows some variability, which calls for a closer examination of the company's debt and interest payment dynamics.