DXP Enterprises Inc (DXPE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.19 | 3.09 | 2.84 | 2.53 | 2.45 |
DXP Enterprises Inc has consistently maintained a 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 for the past five years, signifying that the company has no debt relative to its assets, capital, or equity. This demonstrates a low level of financial risk and indicates that the company primarily funds its operations through equity and retained earnings rather than debt.
However, the Financial leverage ratio has been increasing over the years, from 2.45 in 2020 to 3.19 in 2024. This indicates that the company's reliance on debt to finance its operations has been increasing, which could potentially expose it to higher financial risk in the future. Overall, while DXP Enterprises Inc has a strong solvency position currently, monitoring the trend in the Financial leverage ratio would be important to assess the company's long-term financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.33 | 2.62 | 3.26 | 1.91 | -1.35 |
The interest coverage ratio for DXP Enterprises Inc has fluctuated over the past five years. In December 2020, the interest coverage ratio was negative at -1.35, indicating that the company's operating income was insufficient to cover its interest expenses. However, there has been a significant improvement in the company's financial health since then. By December 2021, the interest coverage ratio increased to 1.91, showing that the company's operating income was almost sufficient to cover its interest expenses.
As of December 31, 2022, the interest coverage ratio further improved to 3.26, indicating that the company's ability to meet its interest obligations has strengthened significantly. In the following years, the interest coverage ratio remained above 2, with figures of 2.62 in December 2023 and 2.33 in December 2024, suggesting continued improvement in the company's ability to handle its interest payments.
Overall, the trend in DXP Enterprises Inc's interest coverage ratio demonstrates a positive trajectory, reflecting the company's enhanced financial stability and ability to manage its debt obligations effectively over the years.