CorVel Corp (CRVL)

CorVel Corp has consistently maintained a debt-free capital structure over the past five years as indicated by a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 for each year. This signifies that the company has financed its operations primarily through equity rather than debt.

However, the financial leverage ratio has fluctuated over the years, ranging from 1.84 to 2.19. The decreasing trend observed from 2020 to 2024 suggests that the company has reduced its reliance on debt to finance its assets and operations. A financial leverage ratio above 1 indicates that the company has more debt in its capital structure than equity.

Overall, the sustained absence of debt in the company's capital structure combined with the decreasing trend in the financial leverage ratio reflect CorVel Corp's strong solvency position and ability to meet its financial obligations without undue reliance on external borrowing.

---

Coverage ratios

CorVel Corp has exhibited a consistently strong interest coverage ratio over the past five years, indicating its ability to comfortably meet its interest obligations. The trend reveals an improving financial capacity to cover interest expenses, with the ratio increasing from 769.51 in 2021 to 1,106.83 in 2024. This upward trajectory suggests that the company's earnings before interest and taxes (EBIT) are substantially higher than its interest expenses, reflecting good financial health and a reduced risk of default. Overall, the company's interest coverage ratio demonstrates a positive and stable financial performance.