Expeditors International of Washington, Inc. (EXPD)
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 | 2.14 | 1.93 | 1.80 | 2.18 | 1.85 |
Expeditors International of Washington, Inc. demonstrates a consistently strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 over the past five years, indicating that the company has not relied heavily on debt to finance its assets or operations during this period.
In terms of financial leverage, the financial leverage ratio has shown some fluctuations, ranging from 1.80 to 2.18 over the years 2020 to 2024. This indicates that the company has been using a moderate amount of debt in its capital structure, but overall, the levels are still within reasonable limits.
Overall, the solvency ratios reflect Expeditors International's sound financial health and its ability to meet its financial obligations comfortably without being heavily burdened by debt. The company's low debt levels point towards a conservative financing strategy, which could provide stability and flexibility in managing its financial risks.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 195.82 | 78.38 | 4,683.77 | 4,368.87 |
Expeditors International of Washington, Inc.'s interest coverage ratio has been consistently strong over the years, indicating the company's ability to comfortably meet its interest obligations with its operating income. In 2020, the interest coverage ratio was at an impressive 4,368.87, and it increased further to 4,683.77 in 2021, highlighting the company's robust financial position.
However, there was a significant decline in the interest coverage ratio in 2022 to 78.38, which might be a cause for concern as it indicates a potential strain on the company's ability to cover its interest expenses from its operating income.
Fortunately, in the following years, Expeditors International of Washington, Inc. was able to improve its interest coverage ratio, reaching 195.82 in 2023. This recovery suggests management's efforts to strengthen the financial position and ensure the company's ability to meet its debt obligations.
It is worth noting that there is no reported data for 2024, but based on the trend observed in the previous years, monitoring the interest coverage ratio in future financial statements will be crucial to assess the company's ability to manage its debt effectively.