ExlService Holdings Inc (EXLS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.16 | 0.00 | 0.16 | 0.16 |
| Debt-to-capital ratio | 0.13 | 0.22 | 0.00 | 0.22 | 0.22 |
| Debt-to-equity ratio | 0.15 | 0.29 | 0.00 | 0.28 | 0.29 |
| Financial leverage ratio | 1.62 | 1.78 | 1.85 | 1.74 | 1.77 |
The solvency ratios of ExlService Holdings Inc demonstrate a consistent improvement in the company's ability to meet its financial obligations over the past five years.
The debt-to-assets ratio, which measures the proportion of total assets financed by debt, has decreased from 0.20 in 2019 to 0.14 in 2023, indicating a more conservative capital structure and lower financial risk.
Similarly, the debt-to-capital ratio, which indicates the percentage of the company's capital that is financed by debt, has also shown a declining trend from 0.26 in 2019 to 0.18 in 2023. This suggests that the company is relying less on debt for funding its operations.
The debt-to-equity ratio, a measure of the company's leverage, has decreased steadily from 0.35 in 2019 to 0.22 in 2023. This implies that ExlService Holdings Inc has been reducing its reliance on debt financing in favor of equity over the years.
Lastly, the financial leverage ratio, which shows the extent to which the company's operations are funded by debt, has exhibited a downward trajectory from 1.77 in 2019 to 1.62 in 2023. This indicates that the company is becoming less leveraged and has a stronger equity position relative to debt.
Overall, these solvency ratios suggest that ExlService Holdings Inc has been effectively managing its debt levels and improving its financial stability, positioning the company well to meet its financial obligations and weather potential economic uncertainties in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 19.06 | 24.09 | 20.39 | 11.29 | 7.09 |
The interest coverage ratio for ExlService Holdings Inc has shown a favorable trend over the past five years. The company's ability to cover its interest expenses has improved consistently, indicating a strong financial position and sufficient earnings to meet its interest obligations.
The interest coverage ratio was 18.13 times in 2023, which means the company generated 18.13 times the amount needed to cover its interest expenses for the year. This was a slight decrease from the previous year but still remained at a healthy level.
In 2022 and 2021, the interest coverage ratios were 23.34 and 20.62, respectively, indicating a robust ability to meet interest payments with operating income.
In 2020, the interest coverage ratio was 9.81, which although lower than the preceding years, still suggests that the company's earnings were sufficient to cover its interest expenses nearly ten times over.
In 2019, the interest coverage ratio was 6.23, showing a significant improvement in the company's ability to cover interest expenses compared to previous years.
Overall, ExlService Holdings Inc's interest coverage ratio has been consistently strong over the past five years, reflecting the company's sound financial health and capacity to service its debt obligations.