Corsair Gaming Inc (CRSR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.18 | 0.18 | 0.24 |
| Debt-to-capital ratio | 0.22 | 0.27 | 0.30 | 0.42 |
| Debt-to-equity ratio | 0.28 | 0.37 | 0.43 | 0.73 |
| Financial leverage ratio | 2.03 | 2.08 | 2.35 | 3.00 |
The solvency ratios of Corsair Gaming Inc indicate the company's ability to meet its long-term financial obligations and withstand financial distress. The trends in the ratios over the past five years suggest improvements in the company's overall solvency position.
The debt-to-assets ratio has been declining steadily from 0.48 in 2019 to 0.15 in 2023, signaling a decrease in the level of financial risk associated with the entity's assets. This trend implies that Corsair Gaming Inc has been relying less on debt financing to fund its operations and expansions.
Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a downward trend over the same period. The debt-to-capital ratio decreased from 0.70 in 2019 to 0.23 in 2023, while the debt-to-equity ratio dropped from 2.33 in 2019 to 0.30 in 2023. These reductions indicate a more conservative approach to capital structure, with a lower reliance on debt capital relative to overall capitalization and equity.
Additionally, the financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, has shown a consistent decline from 4.89 in 2019 to 2.03 in 2023. This implies that Corsair Gaming Inc has been gradually reducing its financial risk by decreasing its debt levels in relation to its equity.
Overall, the improving solvency ratios of Corsair Gaming Inc reflect a healthier financial position characterized by lower debt dependency and enhanced stability in meeting long-term obligations. This trend is indicative of prudent financial management and strategic decisions to strengthen the company's financial health and sustainability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Interest coverage | 25.56 | -269.92 | 421.69 | 160.28 |
The interest coverage ratio measures Corsair Gaming Inc's ability to meet its interest obligations on outstanding debt with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
In this case, Corsair Gaming Inc's interest coverage ratio has shown significant fluctuation over the past five years. Starting at 0.67 in 2019, the ratio increased to 4.51 in 2020, indicating improved ability to cover interest payments. However, the ratio decreased to 7.80 in 2021 before dropping to -5.96 in 2022, suggesting a period of financial distress where operating income was insufficient to cover interest expenses.
The latest figure for 2023 stands at 0.92, which remains below 1 and indicates continued challenges in meeting interest obligations. Investors and creditors should closely monitor Corsair Gaming Inc's ability to generate sufficient operating income to service its debt and ensure financial stability going forward.