Dynatrace Holdings LLC (DT)
Solvency ratios
| Mar 31, 2024 | 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.10 | 0.11 | 0.13 | 0.15 | 0.16 | 0.17 | 0.21 | 0.23 | 0.25 | 0.25 | 0.27 | 0.29 | 0.56 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | 0.15 | 0.17 | 0.19 | 0.21 | 0.24 | 0.26 | 0.30 | 0.32 | 0.34 | 0.35 | 0.38 | 0.39 | 1.77 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.15 | 0.18 | 0.21 | 0.24 | 0.27 | 0.31 | 0.35 | 0.42 | 0.47 | 0.51 | 0.53 | 0.60 | 0.64 | — |
| Financial leverage ratio | 1.69 | 1.57 | 1.54 | 1.60 | 1.72 | 1.65 | 1.73 | 1.81 | 1.95 | 1.88 | 1.84 | 1.91 | 2.03 | 2.04 | 2.00 | 2.06 | 2.12 | 2.21 | 2.18 | — |
Dynatrace Holdings LLC's solvency ratios have displayed some volatility over the past quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained relatively low, indicating a conservative capital structure with a low reliance on debt. However, there has been a slight increasing trend in these ratios over time, suggesting a gradual increase in the company's debt levels in relation to its assets, capital, and equity.
The financial leverage ratio, which reflects the extent of the company's financial leverage, has also shown fluctuations but generally illustrates an increasing trend. This indicates that the company has been utilizing more debt financing to support its operations and investments, which could potentially increase financial risk and interest obligations in the future.
In conclusion, while Dynatrace Holdings LLC has maintained a conservative debt profile, the increasing trend in the solvency ratios, particularly the financial leverage ratio, warrants close monitoring to ensure that the company's financial health and stability are not compromised by excessive debt levels.
Coverage ratios
| Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.44 | 4.11 | 5.01 | 6.54 | 8.04 | 9.37 | 10.63 | 8.33 | 7.98 | 7.69 | 7.29 | 6.87 | 6.47 | 4.69 | 3.22 | -3.79 | -3.79 |
The interest coverage ratio for Dynatrace Holdings LLC has shown fluctuating trends over the past quarters. The ratio indicates the company's ability to meet its interest obligations with its operating income.
From December 2019 to June 2022, the interest coverage ratio generally improved, showing a positive trend. This suggests that the company's operating income was increasing at a faster rate than its interest expenses during this period. This was a positive sign of the company's financial health.
However, starting from September 2022, the interest coverage ratio began to decline. Although the ratio remained above 7 for the most part, the decreasing trend may indicate a potential strain on the company's ability to cover interest payments with its operating income.
Notably, in the first quarter of 2020 and second quarter of 2020, the interest coverage ratio fell into negative territory. This implies that the company's operating income was insufficient to cover its interest expenses during these periods, which can be a concerning sign for lenders and investors.
Overall, while the company has historically maintained a reasonable interest coverage ratio, the recent downward trend and instances of negative coverage warrant further monitoring to assess the company's ability to fulfill its interest obligations in the future.