Deluxe Corporation (DLX)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.49	0.51	0.53	0.46	0.45
Debt-to-capital ratio	0.71	0.72	0.74	0.61	0.61
Debt-to-equity ratio	2.49	2.60	2.83	1.55	1.55
Financial leverage ratio	5.10	5.10	5.35	3.41	3.40

The solvency ratios for Deluxe Corp. provide insights into the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Deluxe Corp.'s debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.45 to 0.55, indicating that the company typically finances approximately 45%-55% of its assets through debt.

The debt-to-capital ratio indicates the percentage of a company's capital structure that is comprised of debt. Deluxe Corp.'s debt-to-capital ratio has also remained consistent around 0.61 to 0.75, revealing that debt constitutes around 61%-75% of the company's capital structure.

The debt-to-equity ratio compares a company's total debt to its shareholders' equity. Deluxe Corp.'s debt-to-equity ratio has shown an upward trend over the past five years, increasing from 1.55 to 2.93, suggesting that the company has been relying more on debt financing relative to equity.

The financial leverage ratio measures the extent to which a company is using debt to fund its operations. Deluxe Corp.'s financial leverage ratio has fluctuated but generally increased from 3.40 to 5.35 over the five-year period, indicating a higher level of financial leverage and risk.

Overall, Deluxe Corp.'s solvency ratios suggest that the company has been maintaining a relatively stable level of debt utilization to support its operations, with a slight increase in reliance on debt financing observed over the years. Investors and creditors should consider these trends when assessing the company's financial health and risk profile.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	1.32	1.89	2.69	2.15	-5.22

The interest coverage of Deluxe Corp. has shown a declining trend over the past five years, decreasing from 9.44 in 2019 to 1.64 in 2023. This indicates that the company's ability to meet its interest obligations with its operating income has weakened. A lower interest coverage ratio may signal potential difficulties in servicing its debt obligations or indicate a higher level of financial risk. It is important for stakeholders, including investors and creditors, to closely monitor this trend and assess the company's overall financial health and ability to manage its debt levels effectively.