DXP Enterprises Inc (DXPE)
Solvency ratios
| 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 | Mar 31, 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 | 3.19 | 3.06 | 3.09 | 3.15 | 3.09 | 2.87 | 2.80 | 2.81 | 2.84 | 2.58 | 2.62 | 2.51 | 2.53 | 2.53 | 2.62 | 2.47 | 2.45 | 2.28 | 2.19 | 2.25 |
DXP Enterprises Inc has consistently maintained a strong solvency position as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 throughout the reported periods. This suggests that the company carries minimal debt relative to its total assets, capital structure, and equity, indicating a low level of financial risk.
The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt rather than equity, has shown a slight increase over the years but remains relatively stable. Starting at 2.25 in March 2020, it reached a peak of 3.19 by March 2024. While the increase indicates a higher reliance on debt financing, the ratio is still within a reasonable range and does not raise immediate solvency concerns.
Overall, DXP Enterprises Inc's solvency ratios reflect a conservative financial strategy with a prudent approach to managing debt levels, which has contributed to maintaining a healthy financial position and minimizing the risk of financial distress.
Coverage ratios
| 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 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.33 | 2.21 | 2.24 | 2.37 | 2.24 | 2.35 | 2.44 | 2.52 | 3.27 | 3.44 | 3.07 | 2.62 | 1.93 | 1.16 | -1.08 | -1.53 | -1.35 | -0.95 | 2.63 | 3.35 |
The interest coverage ratio of DXP Enterprises Inc has shown fluctuations over the periods analyzed. The ratio indicates the company's ability to meet its interest obligations with its operating income. A ratio above 1 indicates that the company generates enough operating income to cover its interest expenses.
From March 31, 2020, to September 30, 2021, the company experienced negative interest coverage ratios, meaning its operating income was insufficient to cover its interest expenses during these periods. However, from December 31, 2021, onwards, the interest coverage ratio improved consistently, indicating that the company's operating income became more sufficient to cover its interest payments.
The ratio increased from 1.93 on December 31, 2021, to 3.44 on September 30, 2022, showing a positive trend in the ability of the company to cover its interest payments. Although there were minor fluctuations in the subsequent periods, the interest coverage ratio remained above 2, indicating a relatively healthy financial position in terms of meeting interest obligations.
Overall, the trend in DXP Enterprises Inc's interest coverage ratio suggests an improvement in the company's ability to service its debt over the analyzed periods, reflecting a better financial health and potentially reduced risk for creditors.