Concentrix Corporation (CNXC)

Concentrix Corporation's solvency ratios indicate the company's ability to meet its financial obligations in the long term.

The Debt-to-assets ratio shows a consistency in the company's ability to effectively manage its debt in relation to its total assets, with fluctuations observed over the periods but generally maintained within a range of 0.32 to 0.47. This suggests that Concentrix Corporation has a relatively low level of debt compared to its total assets, which is a positive sign of financial stability.

The Debt-to-capital ratio reflects the proportion of debt used to finance the company's operations compared to its total capital. Concentrix Corporation's Debt-to-capital ratio fluctuates within a range of 0.43 to 0.58, indicating that the company has been using a moderate to high level of debt in its capital structure. This may pose some risk considering the ratio surpasses 0.50 in some periods, highlighting a potential dependence on debt financing.

The Debt-to-equity ratio reveals Concentrix Corporation's reliance on debt versus equity for financing its operations. The ratio fluctuates between 0.75 to 1.37, showing that the company has been increasingly leaning towards debt financing over equity over the periods. A ratio above 1 indicates higher reliance on debt, which could lead to increased financial risk and potential insolvency concerns.

The Financial leverage ratio, which measures the company's total assets relative to its equity, shows a consistent increase over the periods, reaching up to 3.01 by November 30, 2023. This indicates a higher level of financial leverage and potential risk as the company's assets are increasingly financed by debt rather than equity.

In summary, Concentrix Corporation's solvency ratios suggest a relatively stable debt management in terms of assets but highlight increasing reliance on debt financing in its capital structure and operations, raising concerns regarding financial risk and solvency over time. It would be prudent for the company to carefully monitor and manage its debt levels to maintain a healthy financial position.

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Coverage ratios

Concentrix Corporation's interest coverage ratio, which indicates the company's ability to meet its interest payment obligations with its operating income, has shown fluctuations over the periods analyzed.

As of November 30, 2021, the interest coverage stood at a healthy 24.84 times, indicating that Concentrix had more than enough operating income to cover its interest expenses. However, this ratio declined slightly to 24.27 by February 28, 2022, and further dropped to 20.23 by May 31, 2022.

A more significant decline was observed by August 31, 2022, where the interest coverage ratio fell to 13.56, signaling possibly increased pressure on Concentrix's ability to cover interest payments from its operating earnings. This downward trend continued into the following periods with ratios of 9.14 on November 30, 2022, 6.81 on February 28, 2023, and 5.05 on May 31, 2023.

There was a slight improvement in the interest coverage ratio by August 31, 2023, at 6.65, followed by further improvement to 8.76 on November 30, 2023, and a more substantial increase to 13.88 by February 29, 2024. This improvement signaled a better ability to cover interest payments.

A notable peak was reached by May 31, 2024, with an interest coverage ratio of 91.01, reflecting a significant jump in Concentrix's operating income relative to its interest expenses. However, this was followed by a decline to 26.81 on August 31, 2024, and a further decrease to 24.65 by February 28, 2025.

Overall, Concentrix Corporation's interest coverage ratios have shown fluctuations over the periods analyzed, with some periods indicating a comfortable ability to cover interest payments and others suggesting potential challenges in meeting these obligations from operating earnings. It is important for stakeholders to monitor these ratios closely to assess the company's financial health and capacity to manage its debt obligations.