DocuSign Inc (DOCU)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.25 | 0.27 | 0.28 | 0.28 | 0.30 | 0.31 | 0.32 | 0.30 | 0.24 | 0.23 | 0.25 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.59 | 0.64 | 0.67 | 0.72 | 0.75 | 0.78 | 0.75 | 0.68 | 0.53 | 0.49 | 0.47 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.46 | 1.77 | 2.06 | 2.61 | 3.00 | 3.45 | 3.05 | 2.13 | 1.14 | 0.95 | 0.90 |
| Financial leverage ratio | 2.00 | 1.90 | 1.91 | 2.57 | 2.63 | 3.46 | 3.85 | 4.18 | 4.88 | 5.83 | 6.55 | 7.38 | 9.22 | 10.06 | 11.12 | 9.44 | 7.17 | 4.81 | 4.09 | 3.68 |
DocuSign Inc's solvency ratios indicate the company's ability to meet its long-term debt obligations. The Debt-to-assets ratio shows a decreasing trend from 2020 to 2022, suggesting a lower reliance on debt to finance assets. The Debt-to-capital ratio exhibits a similar downward trend, indicating a decrease in the proportion of debt in the company's capital structure.
Additionally, the Debt-to-equity ratio also shows a declining trend, implying a lower level of financial risk as equity financing becomes relatively more dominant. The Financial leverage ratio, which measures the company's reliance on debt to finance its operations, also displays a decreasing trend over the years, indicating improved financial stability and reduced financial risk.
Overall, DocuSign Inc's solvency ratios reflect a positive financial position with decreasing debt levels and increasing equity financing, enhancing the company's solvency and long-term stability.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 138.09 | 64.71 | 41.12 | 25.82 | 14.69 | 11.22 | 1.82 | -7.76 | -13.07 | -18.63 | -15.05 | -12.40 | -9.38 | -7.01 | -7.03 | -6.64 | -6.45 | -5.96 | -5.69 | -5.91 |
DocuSign Inc's interest coverage ratio has shown a significant improvement over the past few years. The interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of covering its interest expenses.
From April 30, 2020, to October 31, 2022, DocuSign's interest coverage ratio was negative, indicating that the company was unable to cover its interest payments with its operating income during this period. However, from January 31, 2023, onwards, the interest coverage ratio turned positive, showing a positive trend.
The interest coverage ratio continued to increase steadily, reaching a peak of 138.09 as of January 31, 2025. This significant improvement in the interest coverage ratio suggests that DocuSign's ability to meet its interest obligations has strengthened over time, indicating a healthier financial position in terms of debt repayment capacity. Investors and creditors may view this positive trend favorably as it reflects the company's improving financial stability.