Doximity Inc (DOCS)

Doximity Inc's solvency ratios indicate a strong financial position with minimal reliance on debt. The Debt-to-assets ratio has remained at 0.00 consistently from March 31, 2021, to March 31, 2025, suggesting that the company has no debt in relation to its total assets.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also been stable at 0.00 over the same period. This implies that the company's capital structure is primarily equity-financed, minimizing financial risk associated with debt obligations.

The Financial leverage ratio shows a decreasing trend from 3.77 on March 31, 2021, to 1.20 on March 31, 2024. This decline indicates that the company's reliance on debt has decreased over time, further strengthening its solvency position.

Overall, the consistently low debt ratios and decreasing financial leverage ratio reflect Doximity Inc's conservative approach to capital structure and solid solvency position, which bodes well for its financial stability and ability to meet its long-term obligations.

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Coverage ratios

Interest coverage ratio is a financial metric used to evaluate a company's ability to pay interest on its outstanding debt. It indicates how easily a company can cover its interest expense with its operating income. A higher interest coverage ratio is generally seen as favorable as it suggests the company is better positioned to meet its interest obligations.

In the case of Doximity Inc, the interest coverage ratio has shown significant fluctuations over the years. As of March 31, 2021, the interest coverage ratio was 12.94, indicating that the company's operating income was able to cover its interest expense approximately 12.94 times. This suggests a moderate ability to meet its interest payments.

The year ending March 31, 2022, marked a substantial improvement in the interest coverage ratio to 228.86, which reflects a significant increase in the company's ability to cover its interest expenses. This sharp increase may signal improved financial health and reduced financial risk for Doximity Inc during that period.

However, in the subsequent years, the interest coverage ratio decreased to 14.02 as of March 31, 2023. This decline indicates a reduced ability to cover interest payments compared to the previous year. The data for March 31, 2024, and March 31, 2025, is not available (marked as "—"), making it challenging to assess the company's current interest coverage position.

Overall, the fluctuations in Doximity Inc's interest coverage ratio suggest varying levels of financial stability and performance over the years. It would be essential for stakeholders to closely monitor this ratio in the future to assess the company's ability to meet its interest obligations and manage its debt effectively.