Everus Construction Group Inc (ECG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 3.05 | 2.47 | 2.97 | — |
Based on the solvency ratios provided for Everus Construction Group Inc, we can observe the following trends:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Everus Construction Group Inc had no debt relative to its total assets in the years 2022, 2023, and 2024, suggesting that the company is not heavily reliant on borrowed funds to finance its operations.
2. Debt-to-capital ratio: The debt-to-capital ratio assesses the extent of a company's capital structure attributed to debt. Everus Construction Group Inc maintained a debt-to-capital ratio of 0.00 across the years 2022, 2023, and 2024, indicating a conservative capital structure with no debt financing involved.
3. Debt-to-equity ratio: The debt-to-equity ratio reveals the proportion of a company's financing that comes from debt compared to equity. Similarly, Everus Construction Group Inc reported a debt-to-equity ratio of 0.00 in the years 2022, 2023, and 2024, signaling that the company relies more on equity financing compared to debt.
4. Financial leverage ratio: This ratio provides insights into the company's financial leverage and the extent to which it relies on debt. The financial leverage ratio increased from 2.97 in 2022 to 3.05 in 2024, indicating a slight rise in leverage over the years.
Overall, Everus Construction Group Inc appears to have a strong solvency position, with no significant debt obligations relative to its assets, capital, or equity. The increase in the financial leverage ratio from 2022 to 2024 suggests a slightly higher reliance on debt financing in recent years, but the company's overall solvency ratios reflect a conservative and stable financial structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Interest coverage | 0.00 | 6.61 | 26.13 | 41.66 |
Based on the interest coverage ratio data provided for Everus Construction Group Inc, it is evident that the company's ability to cover its interest expenses has been gradually declining over the years.
As of December 31, 2021, the interest coverage ratio stood at a healthy level of 41.66 times, indicating that the company generated more than enough operating income to cover its interest payments. However, by December 31, 2022, this ratio decreased to 26.13 times, suggesting a slight decrease in the company's ability to cover its interest expenses.
The trend becomes more concerning in the subsequent years, as the interest coverage ratio plummeted to 6.61 times by December 31, 2023, indicating a significant decline in the company's ability to meet its interest obligations. Furthermore, by December 31, 2024, the interest coverage ratio dropped to 0.00, implying that the company's operating income was no longer sufficient to cover its interest expenses, which raises serious concerns about the company's financial health and sustainability.
Overall, the declining trend in Everus Construction Group Inc's interest coverage ratio over the years suggests a deteriorating ability to meet its interest obligations, indicating potential financial challenges that may require immediate attention and strategic measures to improve the company's financial position.