Deluxe Corporation (DLX)

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.49	0.54	0.54	0.55	0.51	0.54	0.55	0.55	0.53	0.57	0.59	0.44	0.46	0.52	0.55	0.56	0.45	0.49	0.41	0.41
Debt-to-capital ratio	0.71	0.72	0.72	0.73	0.72	0.73	0.73	0.74	0.74	0.76	0.76	0.60	0.61	0.67	0.70	0.71	0.61	0.64	0.52	0.51
Debt-to-equity ratio	2.49	2.58	2.58	2.70	2.60	2.67	2.71	2.83	2.83	3.08	3.22	1.50	1.55	2.03	2.35	2.41	1.55	1.76	1.06	1.05
Financial leverage ratio	5.10	4.82	4.77	4.94	5.10	4.92	4.93	5.11	5.35	5.39	5.47	3.39	3.41	3.93	4.25	4.31	3.40	3.59	2.59	2.59

Deluxe Corp.'s solvency ratios provide insights into the company's ability to meet its debt obligations and its overall financial leverage. Over the past eight quarters, there have been variations in the solvency ratios:

1. Debt-to-assets ratio:
- The debt-to-assets ratio has fluctuated between 0.52 and 0.57 over the quarters analyzed. This ratio indicates that, on average, 52-57% of Deluxe Corp.'s assets are financed by debt.

2. Debt-to-capital ratio:
- The debt-to-capital ratio has been relatively stable, hovering around 0.73-0.75. This ratio reflects the proportion of the company's capital structure that is financed by debt, with 73-75% being debt-funded.

3. Debt-to-equity ratio:
- The debt-to-equity ratio has shown some variability, ranging from 2.64 to 2.92. This ratio signifies that, on average, Deluxe Corp. has 2.64-2.92 times more debt than equity in its capital structure.

4. Financial leverage ratio:
- The financial leverage ratio has also exhibited fluctuations between 4.77 and 5.11. This ratio measures the extent to which the company's operations are funded by debt, with a higher ratio indicating higher financial leverage.

Overall, while Deluxe Corp. has maintained relatively consistent levels of debt financing over the quarters, there have been fluctuations in the specific solvency ratios. Monitoring these ratios can help stakeholders assess the company's financial risk and ability to service its debt obligations.

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	1.32	1.31	1.60	1.75	1.89	2.05	2.04	2.02	2.69	3.52	6.26	7.16	2.16	2.90	-10.59	-8.73	-4.53	-3.91	5.45	7.01

The interest coverage ratio for Deluxe Corp. has shown a decreasing trend over the past eight quarters, starting from 2.71 in Q1 2022 to 1.64 in Q4 2023. This indicates that the company's ability to cover its interest expenses from its operating profits has been weakening. A declining trend in interest coverage ratio may raise concerns about the company's financial health and its ability to meet its debt obligations in the long term. It is essential for the company to closely monitor and manage its interest expenses and seek ways to increase its operating profits to improve the interest coverage ratio in the future.