Corsair Gaming Inc (CRSR)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.16 | 0.16 | 0.17 | 0.18 | 0.20 | 0.20 | 0.18 | 0.18 | 0.18 | 0.20 | 0.22 | 0.24 | 0.29 |
| Debt-to-capital ratio | 0.22 | 0.24 | 0.25 | 0.26 | 0.27 | 0.32 | 0.31 | 0.29 | 0.30 | 0.31 | 0.34 | 0.38 | 0.42 | 0.49 |
| Debt-to-equity ratio | 0.28 | 0.32 | 0.34 | 0.35 | 0.37 | 0.46 | 0.46 | 0.42 | 0.43 | 0.45 | 0.51 | 0.60 | 0.73 | 0.95 |
| Financial leverage ratio | 2.03 | 2.06 | 2.03 | 2.05 | 2.08 | 2.29 | 2.35 | 2.27 | 2.35 | 2.50 | 2.60 | 2.73 | 3.00 | 3.23 |
The solvency ratios of Corsair Gaming Inc indicate the company's ability to meet its financial obligations and manage its debt levels over time.
The debt-to-assets ratio has been generally stable, ranging from 0.15 to 0.18 over the past few quarters. This ratio suggests that Corsair Gaming's debt accounts for only a small portion of its total assets, indicating a relatively low level of financial risk.
The debt-to-capital and debt-to-equity ratios have shown a slight increase over the quarters, reaching 0.27 and 0.36 respectively in the most recent quarter. These ratios signify that Corsair Gaming has been relying more on debt to finance its operations compared to its own capital. While these ratios have increased, they are still within reasonable limits.
The financial leverage ratio has fluctuated over the quarters but has remained around 2.0 to 2.3. This ratio indicates the proportion of Corsair Gaming's assets that are financed by debt in relation to its equity. The trend suggests that the company's debt levels have remained fairly stable relative to equity.
Overall, Corsair Gaming Inc's solvency ratios demonstrate a prudent approach to managing debt, with a moderate level of leverage and a focus on maintaining a healthy balance between debt and equity to support the company's operations and growth.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 25.56 | 27.00 | 2.87 | -203.46 | -269.92 | -313.74 | -100.71 | 232.49 | 421.69 | — | — |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations. Looking at the trend for Corsair Gaming Inc's interest coverage ratio over the past eight quarters, we observe considerable fluctuation.
In Q4 2023 and Q3 2023, the interest coverage ratios were 0.92 and 0.99 respectively, indicating that the company's operating profits were just enough to cover its interest expenses. However, in Q2 2023 the ratio dropped significantly to 0.08, suggesting a potential strain on the company's ability to meet interest payments.
The most concerning periods were Q1 2023 and the preceding quarters, where the interest coverage ratios were negative. This indicates that Corsair Gaming Inc's operating profits were insufficient to cover its interest expenses during those quarters, raising red flags about the sustainability of the company's debt structure.
On a more positive note, the company showed significant improvement in Q1 2022, with an interest coverage ratio of 4.86, showcasing a healthy ability to cover interest payments with operating profits.
Overall, Corsair Gaming Inc's interest coverage has displayed volatility, with some quarters showing weak coverage and others demonstrating stronger ability to meet interest obligations. It would be essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and debt repayment capacity.