EPAM Systems Inc (EPAM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Debt-to-capital ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 |
| Debt-to-equity ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 |
| Financial leverage ratio | 1.25 | 1.34 | 1.42 | 1.37 | 1.41 |
The solvency ratios of EPAM Systems Inc over the past five years demonstrate a consistently healthy financial position with minimal debt relative to its assets, capital, and equity. The debt-to-assets ratio has remained stable at 0.01, indicating that only a negligible portion of the company's total assets is financed through debt.
Similarly, the debt-to-capital and debt-to-equity ratios have also been well-managed, staying at low levels of 0.01 to 0.02. These ratios suggest that EPAM Systems relies primarily on equity financing rather than debt to support its operations and growth.
The financial leverage ratio, which measures the degree of financial leverage in the company, has shown a slight decreasing trend over the past five years, indicating a reduction in the company's reliance on debt financing relative to equity. However, the ratio remains relatively stable around 1.4, indicating that EPAM Systems maintains a conservative level of leverage in its capital structure.
Overall, EPAM Systems Inc's solvency ratios reflect a strong financial position, with prudent debt management practices and a healthy balance between debt and equity financing. This stability in solvency ratios bodes well for the company's ability to meet its financial obligations and sustain its long-term growth and profitability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 57.15 | 314.02 | 68.82 | 19.70 |
As the table does not provide specific data on interest coverage for EPAM Systems Inc for the years ending on December 31, 2019 through 2023, it is not possible to calculate or analyze the trend of the company's interest coverage ratio. Interest coverage ratio is a key financial metric used to evaluate a company's ability to pay its interest expenses on outstanding debt. Without the specific figures for interest coverage, a detailed analysis of this particular ratio for EPAM Systems Inc cannot be conducted. It is recommended to review the company's financial statements or seek additional information to assess its financial health in terms of interest coverage.