Equifax Inc (EFX)
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 | 2.45 | 2.71 | 2.92 | 3.08 | 3.03 |
Equifax Inc has consistently maintained a very strong solvency position over the years, as indicated by its debt-related ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 for the years 2020 to 2024. This implies that the company's total debt level is negligible in relation to its total assets, capital, and equity, suggesting minimal financial risk and a high degree of solvency.
Furthermore, the Financial leverage ratio, which shows the extent to which the company relies on debt financing, has decreased from 3.03 in 2020 to 2.45 in 2024. This declining trend indicates that Equifax Inc has been reducing its reliance on debt to fund its operations and investments, which is a positive sign for its financial health and stability.
Overall, Equifax Inc's solvency ratios demonstrate a prudent financial strategy, with a strong ability to meet its financial obligations and weather any potential economic challenges in the future. The company's low debt levels and decreasing leverage ratio indicate a conservative approach to managing its financial structure and risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.54 | 3.97 | 6.08 | 7.52 | 5.84 |
Equifax Inc's interest coverage ratio, which measures the company's ability to meet its interest obligations, has shown fluctuations over the past five years. As of December 31, 2020, the interest coverage ratio was 5.84, indicating that the company generated nearly 5.84 times the operating income to cover its interest expenses.
The ratio improved to 7.52 as of December 31, 2021, reflecting a stronger ability to meet interest payments. However, in the following years, the interest coverage ratio experienced some volatility. By December 31, 2022, the ratio stood at 6.08, showing a slight decrease from the previous year.
The trend reversed in the subsequent years, with the interest coverage ratio declining to 3.97 as of December 31, 2023, and then recovering to 4.54 by December 31, 2024. These fluctuations suggest that Equifax Inc may have experienced changes in its operating income and interest expenses during this period.
Overall, while the company's interest coverage ratio has shown variability, it remained above 1 in all the years analyzed, indicating that Equifax Inc has generally been able to cover its interest payments comfortably. Investors and creditors may continue to monitor this ratio to gauge the company's financial health and ability to service its debt obligations.