Concentrix Corporation (CNXC)
Solvency ratios
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.41 | 0.40 | 0.47 | 0.32 | 0.34 | 0.33 | 0.36 | 0.33 | 0.34 | 0.16 | 0.17 | 0.19 | 0.22 |
| Debt-to-capital ratio | 0.55 | 0.54 | 0.58 | 0.43 | 0.44 | 0.45 | 0.48 | 0.45 | 0.45 | 0.23 | 0.25 | 0.27 | 0.32 |
| Debt-to-equity ratio | 1.23 | 1.19 | 1.37 | 0.75 | 0.79 | 0.83 | 0.91 | 0.81 | 0.83 | 0.31 | 0.34 | 0.38 | 0.47 |
| Financial leverage ratio | 2.98 | 3.01 | 2.91 | 2.30 | 2.36 | 2.47 | 2.55 | 2.43 | 2.46 | 1.93 | 1.95 | 2.02 | 2.14 |
Concentrix Corporation's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The trends in the solvency ratios indicate the company's financial health over the periods analyzed.
The Debt-to-assets ratio has been relatively stable, hovering around 0.35 on average over the past few quarters, indicating that Concentrix relies on debt for approximately 35% of its total assets. This suggests a moderate level of financial risk.
The Debt-to-capital ratio, which measures the proportion of debt in the company's capital structure, has also been consistent, averaging around 0.46. This implies that around 46% of the company's capital is financed through debt, with the rest coming from equity.
The Debt-to-equity ratio shows a similar trend, remaining relatively stable around 0.85 on average. This indicates that Concentrix utilizes a mix of debt and equity to finance its operations, with debt representing about 85% of the equity in the company.
The Financial leverage ratio has shown some fluctuations but has generally stayed above 2. This ratio reflects the extent to which the company's operations are funded by debt, with a higher ratio indicating higher financial risk due to increased reliance on borrowing.
Overall, Concentrix Corporation's solvency ratios suggest a balanced approach to financing its operations, with a moderate level of debt in its capital structure. Monitoring these ratios over time can provide valuable insights into the company's long-term financial stability and ability to meet its obligations.
Coverage ratios
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.62 | 3.29 | 4.16 | 5.05 | 6.81 | 9.14 | 13.56 | 20.23 | 24.27 | 24.84 |
Concentrix Corporation's interest coverage has exhibited a declining trend over the past few quarters, dropping from a high of 24.84 in the fourth quarter of 2021 to 2.62 in the first quarter of 2024. This indicates that the company's ability to cover its interest expenses with its operating income has weakened significantly.
The substantial decrease in the interest coverage ratio suggests that Concentrix may be experiencing challenges in generating sufficient earnings to meet its interest obligations. A declining interest coverage ratio can be a cause for concern as it may signal potential financial distress or an increased risk of default on debt payments.
It is important for investors and stakeholders to closely monitor Concentrix's interest coverage ratio going forward to assess the company's financial health and sustainability. Management should focus on improving profitability and closely managing debt levels to enhance the company's ability to service its interest payments.