DXP Enterprises Inc (DXPE)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.44	0.39	0.39	0.39	0.39	0.31	0.32	0.35	0.35	0.35	0.35	0.35	0.37	0.28	0.28	0.30	0.30	0.30	0.30	0.31
Debt-to-capital ratio	0.58	0.53	0.53	0.52	0.53	0.45	0.46	0.47	0.48	0.47	0.47	0.47	0.47	0.39	0.38	0.40	0.40	0.41	0.42	0.43
Debt-to-equity ratio	1.37	1.12	1.11	1.09	1.12	0.81	0.84	0.87	0.91	0.87	0.89	0.88	0.88	0.65	0.62	0.67	0.67	0.69	0.72	0.75
Financial leverage ratio	3.09	2.87	2.80	2.81	2.84	2.58	2.62	2.51	2.58	2.53	2.55	2.52	2.41	2.28	2.19	2.25	2.23	2.32	2.39	2.46

DXP Enterprises Inc's solvency ratios demonstrate a stable financial position over the past few quarters. The debt-to-assets ratio has been consistently around 0.30 to 0.40, indicating that the company's total debt represents approximately 30% to 40% of its total assets. This suggests that DXP Enterprises relies moderately on debt to finance its operations and investments.

The debt-to-capital ratio has also been relatively steady, ranging from 0.40 to 0.53, indicating that debt accounts for around 40% to 53% of the company's total capital structure. This ratio shows a moderate level of reliance on debt compared to equity to fund its operations.

The debt-to-equity ratio has shown a similar stable trend, hovering around 0.65 to 1.37. This ratio indicates the extent to which the company is leveraged through debt relative to its equity. The ratios suggest that DXP Enterprises has moderate to high debt levels compared to its equity position.

The financial leverage ratio has also been consistent, ranging from 2.19 to 3.09, indicating that the company's total assets are financed at a level approximately 2 to 3 times greater than its equity. This implies that DXP Enterprises has a moderate level of financial leverage, which can be manageable as long as the company can generate sufficient earnings to cover its debt obligations.

Overall, based on the solvency ratios, DXP Enterprises Inc appears to have a balanced approach to its capital structure, with a moderate level of debt usage to support its operations and growth initiatives.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	2.64	2.76	2.94	3.09	3.26	3.47	3.06	2.63	1.94	1.16	-1.08	-1.53	-1.33	-0.87	2.70	3.40	3.42	4.01	3.80	3.52

The interest coverage ratio for DXP Enterprises Inc has seen fluctuations over the periods reviewed. The ratio measures the company's ability to cover interest expenses with its operating income.

From December 2019 to March 2020, the interest coverage ratio ranged from 3.40 to 4.01, indicating a strong ability to cover interest expenses. However, the ratio decreased in the subsequent periods, reaching a low of -1.53 in September 2021 and June 2021, implying that the company's operating income was insufficient to cover its interest expenses during those periods.

Subsequently, there was an improvement in the interest coverage ratio, with positive values ranging from 1.16 to 3.47, demonstrating a better ability to cover interest costs. Notably, the interest coverage ratio was above 3 from March 2022 to December 2023, indicating a relatively solid ability to meet interest obligations with operating income during these periods.

Overall, while there have been fluctuations in the interest coverage ratio, the company has shown an improvement in its ability to cover interest expenses in the more recent periods compared to the challenging periods in 2021. Continued monitoring of the interest coverage ratio will be essential to assess the company's financial stability and risk management.