DocuSign Inc (DOCU)

DocuSign Inc's solvency ratios indicate a strong financial position over the years.

- The Debt-to-assets ratio has shown a decreasing trend from 0.30 in January 31, 2021, to 0.00 in the subsequent years, reflecting a lower level of debt relative to its total assets.

- The Debt-to-capital ratio increased slightly from 0.68 in January 31, 2021, to 0.72 in January 31, 2022, and then dropped to 0.00 in the following years, indicating a reduced reliance on borrowed funds to finance its operations.

- The Debt-to-equity ratio has also demonstrated a decreasing pattern, from 2.13 in January 31, 2021, to 0.00 in the subsequent years, indicating a decreasing level of debt compared to equity.

- The Financial leverage ratio peaked at 9.22 in January 31, 2022, but subsequently declined consistently to 2.00 in January 31, 2025, suggesting that the company has been able to minimize its financial leverage and rely more on equity to support its operations.

Overall, DocuSign Inc's solvency ratios show a positive trend towards lower debt levels and improved financial stability, highlighting its ability to meet its financial obligations and withstand financial challenges.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Negative values indicate that the company's operating income is insufficient to cover its interest expenses.

In January 2021, DocuSign Inc had an interest coverage ratio of -6.45, indicating that its operating income was insufficient to cover its interest expenses. This suggests a potential financial risk as the company may struggle to meet its debt obligations.

The interest coverage ratio further deteriorated to -9.39 by January 2022, indicating a continued challenge in covering interest expenses with operating income.

By January 2023, the interest coverage ratio worsened to -13.07, signaling a significant strain on the company's financial health as it was unable to generate sufficient operating income to cover its interest obligations.

However, the situation improved drastically by January 2024, with a notable recovery as the interest coverage ratio surged to 14.69. This indicates a positive shift in the company's ability to meet its interest payments comfortably.

In January 2025, DocuSign Inc's interest coverage ratio substantially improved to 128.99, indicating a robust ability to cover interest expenses with operating income. This significant improvement suggests a healthier financial position for the company compared to the previous years.

Overall, the trend in DocuSign Inc's interest coverage ratio shows a challenging period where the company struggled to cover its interest expenses initially but managed to significantly improve its financial health in the following years.