DXC Technology Co (DXC)
Solvency ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.78 | 4.36 | 4.53 | 4.69 | 4.93 | 4.79 | 4.24 | 4.24 | 4.15 | 3.69 | 3.59 | 3.69 | 3.75 | 3.92 | 3.96 | 3.87 | 4.15 | 3.94 | 5.40 | 6.07 |
DXC Technology Co has consistently maintained a very strong solvency position as indicated by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 across the periods presented, which suggests that the company's assets are primarily funded through equity rather than debt.
The Financial leverage ratio has shown a decreasing trend from 6.07 in June 2020 to 3.78 in March 2025. This ratio measures the extent to which a company's operations are funded by debt. The decreasing trend indicates that DXC Technology Co has been reducing its financial leverage over time, which is a positive sign for the company's financial stability and risk management.
Overall, the solvency ratios reflect DXC Technology Co's strong financial position and its ability to meet its long-term financial obligations without relying heavily on debt financing.
Coverage ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.38 | 0.94 | 1.22 | -6.12 | -6.23 | -9.56 | -10.86 | -3.06 | -3.42 | 6.98 | 8.04 | 5.69 | 6.59 | -0.89 | 5.83 | 5.12 | 2.82 | -4.57 | -9.15 | -13.21 |
The interest coverage ratio measures DXC Technology Co's ability to meet its interest obligations with its earnings. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the provided data, DXC Technology Co's interest coverage ratio has fluctuated significantly over the past few years. Initially, from June 30, 2020, to December 31, 2021, the company experienced negative interest coverage ratios, indicating that its earnings were insufficient to cover its interest expenses during that period.
However, starting from March 31, 2021, DXC's interest coverage ratio turned positive, indicating an improvement in its ability to cover interest expenses. The ratio continued to increase until September 30, 2022, reaching a peak of 8.04, which suggests a healthier financial position.
Subsequently, from December 31, 2022, to June 30, 2024, the interest coverage ratio once again turned negative, indicating that DXC faced challenges in meeting its interest obligations with its earnings during this period.
By the end of March 31, 2025, the interest coverage ratio improved to 3.38, though still below the levels seen in the earlier positive trend. This improvement suggests a partial recovery in DXC's ability to cover its interest expenses.
In conclusion, DXC Technology Co's interest coverage ratio has shown significant variability, with periods of both strength and weakness in its ability to cover interest expenses with earnings. Monitoring this ratio is crucial to assess the company's financial health and its ability to manage debt obligations effectively.