Deluxe Corporation (DLX)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.00 | 4.28 | 4.30 | 4.49 | 5.10 | 4.81 | 4.76 | 4.94 | 5.09 | 4.92 | 4.93 | 5.11 | 5.35 | 5.39 | 5.46 | 3.39 | 3.47 | 3.92 | 4.25 | 4.31 |
Deluxe Corporation's solvency ratios paint a picture of a company with extremely low levels of debt relative to its assets, capital, and equity over the period from March 31, 2020, to December 31, 2024. The debt-to-assets, debt-to-capital, and debt-to-equity ratios all consistently remain at 0.00 throughout the entire period, indicating that the company is not relying on debt to finance its operations.
However, the financial leverage ratio demonstrates some fluctuations over the same period. Starting at 4.31 on March 31, 2020, the financial leverage ratio decreases to a low of 1.00 on December 31, 2024. These fluctuations suggest changes in the capital structure and financial risk of the company. While the decreasing trend in the financial leverage ratio may indicate a reduction in risk, sudden changes in this ratio should be further investigated to understand the underlying reasons and their potential implications for the company's solvency and financial health.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.70 | 1.76 | 1.84 | 1.79 | 1.65 | 1.72 | 1.84 | 1.93 | 2.26 | 2.34 | 2.33 | 2.79 | 3.70 | 4.92 | 8.97 | 10.17 | 4.43 | 5.21 | -9.29 | -7.77 |
The interest coverage ratio for Deluxe Corporation has shown fluctuating trends over the years based on the provided data. It is important to note that a negative interest coverage ratio, as observed in March and June 2020, indicates that the company's EBIT (Earnings Before Interest and Taxes) was insufficient to cover its interest expenses during those periods.
From September 2020 onwards, the interest coverage ratio improved significantly, indicating that the company's ability to cover its interest expenses with its operating earnings strengthened. However, the ratio started declining again from March 2022 onwards, reaching levels below 2, which may raise concerns about the company's ability to meet its interest obligations comfortably.
Overall, the trend in Deluxe Corporation's interest coverage suggests both periods of stability and challenges. It is essential for stakeholders to monitor the ratio closely to ensure the company's financial health and ability to manage its debt obligations effectively.