Comstock Resources Inc (CRK)

Comstock Resources Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently been at 0.00 over the years 2020 to 2024, indicating that the company has no debt obligations compared to its total assets, capital, and equity, respectively.

Furthermore, the Financial leverage ratio, although showing some variability, generally demonstrates a moderate level of financial leverage. The ratio decreased from 3.21 in 2020 to 2.85 in 2024, suggesting a decreasing reliance on debt financing to support the company's operations. This reduction in financial leverage indicates a more conservative capital structure and a lower risk of financial distress.

Overall, Comstock Resources Inc's solvency ratios reflect a solid financial foundation and a prudent approach to managing its debt levels, which can enhance the company's ability to weather economic uncertainties and capitalize on growth opportunities in the future.

---

Coverage ratios

Comstock Resources Inc's interest coverage ratio has exhibited significant fluctuations over the past five years. The ratio was 0.74 as of December 31, 2020, indicating that the company's operating income was only sufficient to cover 74% of its interest expenses. However, there was a sharp decline in interest coverage to -0.05 by December 31, 2021, suggesting that the company's operating income was insufficient to cover its interest expenses, resulting in a negative coverage ratio.

Subsequently, there was a notable improvement in interest coverage to 9.19 as of December 31, 2022, indicating that the company's operating income was significantly higher than its interest expenses, providing a comfortable margin of safety. However, this strong performance was followed by a decrease in interest coverage to 2.46 by December 31, 2023, although the ratio still indicates that the company's operating income was able to cover its interest expenses.

The trend reversed again by December 31, 2024, with the interest coverage ratio falling to -0.75, signaling a concerning situation where the company's operating income was insufficient to cover its interest obligations, leading to a negative coverage ratio. Overall, the fluctuating nature of Comstock Resources Inc's interest coverage ratio over the period raises concerns about the company's ability to service its debt obligations consistently.