DoubleVerify Holdings Inc (DV)

Based on the provided data, DoubleVerify Holdings Inc demonstrates very strong solvency ratios. The Debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, shows a consistent ratio of 0.00 over the five-year period. This indicates that the company has not relied on debt to fund its operations, which can be viewed positively as it implies lower financial risk.

Similarly, the Debt-to-capital ratio, which evaluates the percentage of a company's capital that is financed by debt, also remains at 0.00 throughout the period. This suggests that DoubleVerify has maintained a capital structure primarily supported by equity rather than debt.

Moreover, the Debt-to-equity ratio, which compares a company's total debt to its total equity, stays at 0.00 across all years. This metric further supports the notion that the company has a conservative debt utilization strategy in place.

The Financial leverage ratio, which indicates the proportion of a company's assets that are financed by debt, reveals a relatively stable trend ranging between 1.12 and 1.23 over the five years. This implies that DoubleVerify has maintained a healthy balance between debt and equity in its capital structure, with a slight increase in leverage from 2020 to 2022 but maintaining a consistent level thereafter.

Overall, the solvency ratios suggest that DoubleVerify Holdings Inc has a strong financial position with minimal reliance on debt for its operations and investments. Investors and creditors may view these ratios positively as they reflect a low level of financial risk and potential stability in the company's capital structure.

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Coverage ratios

DoubleVerify Holdings Inc's interest coverage has shown a significant improvement over the years, reflecting the company's ability to meet its interest obligations comfortably. The interest coverage ratio, which measures the company's ability to pay interest expenses with its operating income, was 4.44 as of December 31, 2020.

However, the ratio has increased steadily over the following years, reaching 23.03 as of December 31, 2021, 58.49 as of December 31, 2022, 90.94 as of December 31, 2023, and then slightly decreasing to 80.42 as of December 31, 2024.

This upward trend indicates that DoubleVerify Holdings Inc has been able to generate significantly higher operating income compared to its interest expenses, providing a cushion against potential financial risks. The company's improving interest coverage ratio suggests a healthy financial position and increasing profitability over the years.