3D Systems Corporation (DDD)
Solvency ratios
| Mar 31, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.25 | 0.32 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.30 | 0.30 | 0.29 | 0.00 | 0.00 | 0.00 | 0.03 | 0.03 | 0.03 | 0.06 | 0.06 | 0.07 | 0.09 |
| Debt-to-capital ratio | 0.34 | 0.43 | 0.39 | 0.39 | 0.38 | 0.37 | 0.38 | 0.36 | 0.35 | 0.35 | 0.00 | 0.00 | 0.00 | 0.04 | 0.04 | 0.04 | 0.08 | 0.08 | 0.10 | 0.12 |
| Debt-to-equity ratio | 0.51 | 0.74 | 0.64 | 0.63 | 0.62 | 0.60 | 0.61 | 0.57 | 0.54 | 0.53 | 0.00 | 0.00 | 0.00 | 0.04 | 0.05 | 0.04 | 0.09 | 0.09 | 0.11 | 0.14 |
| Financial leverage ratio | 2.09 | 2.31 | 1.99 | 2.01 | 1.97 | 1.92 | 1.95 | 1.89 | 1.82 | 1.84 | 1.34 | 1.53 | 1.53 | 1.70 | 1.65 | 1.62 | 1.60 | 1.55 | 1.60 | 1.63 |
3D Systems Corporation has shown varying levels of solvency over the past few quarters, as evidenced by its solvency ratios. The debt-to-assets ratio has ranged from 0.25 to 0.32 over the past year, indicating that the company has maintained a relatively stable proportion of debt in relation to its total assets.
The debt-to-capital ratio has fluctuated between 0.34 and 0.43, and the debt-to-equity ratio has ranged from 0.51 to 0.74 during the same period. These ratios suggest that 3D Systems Corporation has been relying moderately on debt to finance its operations, with a significant portion of its capital coming from debt rather than equity.
The financial leverage ratio has ranged from 1.82 to 2.31 over the past year, indicating that the company has been using debt financing to magnify returns to shareholders. However, the ratio has shown some volatility, which may indicate potential risks associated with the company's financial structure.
Overall, while 3D Systems Corporation has maintained a relatively stable debt-to-assets ratio, its debt-to-capital and debt-to-equity ratios have shown more variability. The financial leverage ratio also indicates that the company has been using debt to leverage its returns, which may pose risks in terms of solvency and financial stability.
Coverage ratios
| Mar 31, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -143.07 | -130.21 | -37.43 | -44.50 | -43.92 | -39.75 | -21.76 | -20.89 | -18.11 | -13.74 | -6.88 | -18.57 | -23.60 | -27.11 | -27.10 | -15.15 | -12.04 | -12.86 | -39.20 | -36.05 |
The interest coverage ratio of 3D Systems Corporation has shown a consistent trend of deterioration over the past few quarters, indicating a concerning ability to cover its interest expenses with its earnings before interest and taxes (EBIT). The ratio has been consistently negative, with values ranging from -6.88 to -143.07, reflecting that the company's EBIT has been insufficient to cover its interest expenses.
This downward trend in the interest coverage ratio suggests a deteriorating financial health and raises red flags regarding the company's ability to meet its debt obligations. A negative interest coverage ratio implies that the company is not generating enough operating income to cover its interest payments, potentially leading to increased financial risk and heightened vulnerability to liquidity issues.
Investors, creditors, and stakeholders may view such a low and negative interest coverage ratio as a significant financial risk factor, indicating a higher likelihood of default on debt repayments. It is essential for the company to address its declining interest coverage ratio by either improving its profitability, reducing its interest expenses, or a combination of both to enhance its financial stability and sustainability in the long term.