Dril-Quip Inc (DRQ)

Dril-Quip, Inc. has consistently maintained a low debt position over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being reported as 0.00 in each year. This suggests that the company operates with minimal financial leverage and relies more on equity financing rather than debt to fund its operations and investments.

However, the financial leverage ratio has shown some variability over the same period, ranging from 1.11 to 1.17. This ratio measures the extent to which the company's operations are funded by debt relative to equity. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure.

Overall, Dril-Quip, Inc.'s solvency ratios reflect a conservative approach to capital structure management, with a strong emphasis on equity financing and minimal reliance on debt. This may indicate a lower risk of financial distress and greater stability in the company's ability to meet its financial obligations.

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Coverage ratios

The interest coverage ratio for Dril-Quip, Inc. was not available for the years ending December 31, 2023, 2022, 2020, and 2019. However, for the year ending December 31, 2021, the interest coverage ratio was -233.73. This negative value indicates that Dril-Quip, Inc. did not generate sufficient operating income to cover its interest expenses in 2021, which raises concerns about the company's ability to meet its debt obligations. It suggests that the company may have experienced financial difficulties or had a particularly challenging year in terms of generating profits to cover its interest payments. Monitoring future interest coverage ratios will be important to assess the company's financial health and its ability to manage its debt effectively.