DXC Technology Co (DXC)

Based on the provided data for DXC Technology Co, the solvency ratios paint a picture of a company with very strong financial health.

1. Debt-to-assets ratio: The ratio is consistently at 0.00 across all the years from 2021 to 2025. This indicates that the company has no debt in relation to its total assets, which suggests a low financial risk and a high level of asset coverage.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains constant at 0.00 throughout the period. This signifies that the company's capital structure is free from debt and primarily relies on equity, which is a positive sign for investors and creditors.

3. Debt-to-equity ratio: The debt-to-equity ratio is also consistently at 0.00 over the years. This demonstrates that the company's financial structure is not leveraged with debt and relies entirely on equity funding, indicating a strong financial position and stability.

4. Financial leverage ratio: The financial leverage ratio shows a slight fluctuation from 3.99 to 4.93 between 2021 and 2024, with a dip to 4.09 in 2025. Despite these minor fluctuations, the ratio remains relatively stable over the years. A financial leverage ratio above 1 indicates that the company has more debt than equity, but in this case, the values are low and suggest a moderate level of financial risk.

Overall, based on the solvency ratios provided, DXC Technology Co appears to be in a robust financial position with no significant debt burden and a healthy balance between debt and equity in its capital structure.

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Coverage ratios

Interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.

For DXC Technology Co:
- As of March 31, 2021, the interest coverage ratio was 2.81, indicating that the company's operating income was sufficient to cover its interest expenses.
- By March 31, 2022, the interest coverage ratio improved significantly to 6.59, suggesting a stronger ability to cover interest payments.
- However, the ratio took a downturn by March 31, 2023, reaching -3.42. A negative ratio implies that the company's operating income was insufficient to cover its interest expenses during that period.
- The situation improved slightly by March 31, 2024, with the interest coverage ratio at 1.37, but it remained below the ideal level of 1.
- As of March 31, 2025, the ratio increased to 3.35, reflecting a better ability to cover interest payments compared to the previous year.

Overall, the fluctuating trend in DXC Technology Co's interest coverage ratio indicates variations in the company's ability to meet its interest obligations with its operating income over the years. It is essential for investors and stakeholders to monitor this ratio to assess the company's financial health and its ability to service its debt.