Comstock Resources Inc (CRK)

Comstock Resources, Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations and the level of financial risk associated with its capital structure.

The trend in the debt-to-assets ratio has been relatively stable over the past five years, hovering around 0.50. The ratio indicates that approximately 42% to 56% of the company's assets are financed by debt, with a decreasing trend in recent years.

The debt-to-capital ratio shows a similar pattern, with a range of 0.49 to 0.69. This ratio reflects the proportion of a company's capital structure that is financed by debt, suggesting that around 49% to 69% of Comstock Resources' capital comes from debt, also showing a decreasing trend over the period.

The debt-to-equity ratio indicates the extent to which the company is leveraged through debt. The ratios range from 0.94 to 2.20, with a noteworthy decrease from 2021 to 2022. The ratios suggest that for every dollar of equity, Comstock Resources has between $0.94 and $2.20 of debt, with a substantial decrease in leverage observed in 2022.

The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt compared to equity, shows a decreasing trend from 3.93 in 2021 to 2.50 in 2022. This ratio indicates a significant improvement in the company's financial leverage and risk profile over the past two years.

Overall, the solvency ratios for Comstock Resources, Inc. demonstrate a decreasing reliance on debt financing and improved financial stability and risk management, particularly evident in the decreasing trend observed in the debt-to-equity and financial leverage ratios.

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Coverage ratios

Comstock Resources, Inc.'s interest coverage ratio has varied significantly over the past five years. In 2023, the interest coverage ratio was 1.34, indicating that the company generated enough operating income to cover its interest expenses 1.34 times. This represents a decrease from the previous year, where the ratio was significantly higher at 13.33. The sharp decline in interest coverage from 2022 to 2023 may raise concerns about the company's ability to meet its interest obligations comfortably.

Looking further back, in 2021, the interest coverage ratio was 4.86, reflecting a relatively healthy coverage of interest expenses. However, in 2020, the ratio dropped to a concerning level of 0.69, indicating that the company's operating income was barely sufficient to cover its interest expenses during that period. The ratio improved in 2019 to 1.70, but it still remained relatively low, suggesting that Comstock Resources, Inc. had experienced challenges in generating enough income to cover its interest payments.

Overall, the fluctuation in Comstock Resources, Inc.'s interest coverage ratio over the past five years signals potential financial volatility and the need for close monitoring of the company's ability to service its debt obligations.