Expeditors International of Washington, Inc. (EXPD)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.14 | 2.19 | 2.20 | 2.04 | 1.89 | 1.84 | 1.79 | 1.69 | 1.80 | 1.90 | 2.09 | 2.07 | 2.18 | 2.07 | 1.93 | 1.90 | 1.85 | 1.74 | 1.76 | 1.72 |
Expeditors International of Washington, Inc. has consistently maintained a strong solvency position, as evidenced by its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been at 0.00 throughout the reporting periods from March 31, 2020, to December 31, 2024. This indicates that the company has not relied on debt to finance its assets or operations, reflecting a conservative financial structure.
The financial leverage ratio, which measures the company's debt relative to its equity, has shown some fluctuations over the periods. Initially standing at 1.72 on March 31, 2020, the ratio increased to a peak of 2.20 on June 30, 2024. Despite these fluctuations, the financial leverage ratio has generally remained below 2.5, indicating that the company has been able to manage its debt levels effectively without becoming overly leveraged.
Overall, Expeditors International of Washington, Inc. has maintained a prudent approach to managing its financial obligations, with minimal reliance on debt financing. The company's ability to keep its solvency ratios low underscores its stability and capacity to weather financial challenges while maintaining a healthy balance sheet.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 6,017.32 | 495.06 | 415.72 | 199.39 | 41.10 | 55.30 | 66.28 | 80.79 | 659.90 | 400.02 | 270.98 | 216.80 | 192.56 | 185.15 | 154.47 | 90.30 | 61.92 | 45.23 | 34.33 |
Expeditors International of Washington, Inc.'s interest coverage ratio has witnessed significant fluctuations over the past few years. The interest coverage ratio measures the company's ability to pay its interest expenses from its operating income.
From March 31, 2020, to June 30, 2022, the interest coverage ratio showed a consistent increasing trend, signaling the company's improving ability to cover its interest obligations comfortably. The ratio reached its peak of 400.02 on June 30, 2022, indicating a strong financial position during that period.
However, starting from September 30, 2022, the interest coverage ratio experienced a sharp decline, dropping to 6,017.32 on September 30, 2024. Such a drastic increase in the ratio might be attributed to a decline in operating income or a significant increase in interest expenses during that period.
The sudden spike in the interest coverage ratio to 6,017.32 on September 30, 2024, possibly indicates an anomaly or reporting error, as such an extraordinarily high ratio is not commonly seen and would be unusual in a stable, well-performing company.
Overall, while the company demonstrated a strong ability to cover its interest expenses in the previous periods, the substantial fluctuations in the interest coverage ratio from September 2022 onward require further investigation to understand the underlying reasons and assess the company's financial health accurately.