FTI Consulting Inc (FCN)

The solvency ratios of FTI Consulting Inc. show a consistent and stable financial position over the past five years.

The debt-to-assets ratio has remained constant at 0.10 since 2020, indicating that the company's total debt is relatively low compared to its total assets. This suggests that FTI Consulting has a strong ability to cover its debt obligations with its available assets.

Similarly, the debt-to-capital and debt-to-equity ratios have also remained relatively stable over the years, with values ranging from 0.16 to 0.20. These ratios indicate the proportion of the company's capital that is financed through debt, with values around 0.16-0.20 suggesting that FTI Consulting relies moderately on debt for its capital structure.

The financial leverage ratio, which measures the company's total assets relative to its equity, has shown a slight decrease from 1.98 in 2020 to 1.68 in 2023. This indicates that FTI Consulting's assets are primarily funded through equity rather than debt, which can be seen as a positive sign of financial stability and lower financial risk.

Overall, FTI Consulting's solvency ratios suggest a healthy financial position with a low reliance on debt for financing, which indicates a strong ability to meet its financial obligations and sustain its operations.

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Coverage ratios

FTI Consulting Inc.'s interest coverage has shown fluctuations over the past five years. The interest coverage ratio, a measure of the company's ability to meet interest payments on its debt obligations, was strong in 2022 and 2023, with ratios of 57.52 and 41.39, respectively. This indicates that the company generated significantly more earnings before interest and taxes (EBIT) compared to its interest expenses during those years.

In 2021, the interest coverage ratio decreased to 18.57, reflecting a lower ability to cover interest payments with its operating income. This could signify increased financial risk and a potential strain on the company's cash flow to meet debt obligations.

Similarly, in 2020 and 2019, the interest coverage ratios were 18.03 and 21.16, respectively, suggesting a relatively stable but lower coverage compared to 2022 and 2023.

Overall, FTI Consulting Inc. has experienced variability in its interest coverage ratios, indicating fluctuations in its ability to comfortably cover interest expenses with its operating profits. Investors and creditors may monitor these ratios to assess the company's financial health and risk profile.