ExlService Holdings Inc (EXLS)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.11 | 0.14 | 0.12 | 0.16 | 0.18 | 0.19 | 0.20 | 0.00 | 0.15 | 0.12 | 0.17 | 0.16 | 0.18 | 0.18 | 0.19 | 0.16 | 0.20 | 0.20 | 0.25 |
| Debt-to-capital ratio | 0.13 | 0.16 | 0.19 | 0.17 | 0.22 | 0.25 | 0.27 | 0.27 | 0.00 | 0.20 | 0.16 | 0.22 | 0.22 | 0.23 | 0.24 | 0.26 | 0.22 | 0.26 | 0.27 | 0.32 |
| Debt-to-equity ratio | 0.15 | 0.19 | 0.23 | 0.20 | 0.29 | 0.33 | 0.36 | 0.37 | 0.00 | 0.25 | 0.19 | 0.28 | 0.28 | 0.30 | 0.32 | 0.36 | 0.29 | 0.35 | 0.36 | 0.48 |
| Financial leverage ratio | 1.62 | 1.64 | 1.63 | 1.65 | 1.78 | 1.87 | 1.88 | 1.82 | 1.85 | 1.71 | 1.61 | 1.69 | 1.74 | 1.72 | 1.75 | 1.93 | 1.77 | 1.77 | 1.77 | 1.88 |
The solvency ratios of ExlService Holdings Inc indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. The decreasing trend from 0.19 in Q4 2022 to 0.14 in Q4 2023 suggests that ExlService Holdings has been reducing its reliance on debt to fund its assets, which is a positive sign for solvency.
2. Debt-to-capital ratio: This ratio indicates the percentage of the company's capital structure that is financed by debt. The declining trend from 0.25 in Q4 2022 to 0.18 in Q4 2023 shows that ExlService Holdings has been decreasing its dependence on debt for capital, improving its solvency position.
3. Debt-to-equity ratio: This ratio compares the total debt of the company to its shareholders' equity. The decreasing trend from 0.33 in Q4 2022 to 0.22 in Q4 2023 indicates that the company has been reducing its debt relative to equity, strengthening its solvency position.
4. Financial leverage ratio: This ratio measures the proportion of the company's assets that are financed by debt compared to equity. The decreasing trend from 1.78 in Q4 2022 to 1.62 in Q4 2023 suggests that ExlService Holdings has been decreasing its reliance on debt to finance its assets, which is a positive sign for solvency.
Overall, the improving trends in all solvency ratios indicate that ExlService Holdings Inc has been strengthening its financial position and reducing its reliance on debt, which enhances its ability to meet its long-term financial obligations.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 19.06 | 17.84 | 18.62 | 19.82 | 24.09 | 34.00 | 34.00 | 26.67 | 20.39 | 16.72 | 15.87 | 13.06 | 11.29 | 9.61 | 8.38 | 8.04 | 7.09 | 5.20 | 5.14 | 6.87 |
Based on the interest coverage ratios provided for ExlService Holdings Inc from Q1 2022 to Q4 2023, it is evident that the company has maintained a consistently strong ability to cover its interest expenses with its operating earnings. The interest coverage ratio measures the company's ability to pay interest expenses from its operating income, with higher ratios indicating a better capacity to meet these obligations.
The trend of ExlService Holdings Inc's interest coverage ratios shows a slight decline from Q1 2022 to Q4 2023, starting at a high of 26.58 and gradually decreasing to 18.13. Despite this decline, the company's interest coverage remains relatively healthy and well above the generally accepted minimum threshold of 2, indicating that the company is comfortably meeting its interest payments through its operating profits.
The fluctuations in the interest coverage ratio over the periods analyzed may be influenced by various factors such as changes in interest expenses, fluctuations in operating income, or adjustments in the capital structure. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial health and ability to service its debt obligations. Overall, ExlService Holdings Inc's consistently strong interest coverage ratios suggest a sound financial position and effective management of its debt obligations.