FTI Consulting Inc (FCN)
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 | 1.59 | 1.68 | 1.93 | 1.96 | 1.98 |
FTI Consulting Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 over the years from 2020 to 2024, indicating no significant financial leverage through debt financing. The Financial leverage ratio has shown a decreasing trend from 1.98 in 2020 to 1.59 in 2024, signaling a reduction in the company's reliance on debt to finance its operations. Overall, these solvency ratios suggest that FTI Consulting Inc has a solid financial foundation and a low risk of financial distress due to its conservative debt levels.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 51.46 | 26.01 | 30.64 | 15.68 | 14.61 |
Based on the provided data, the interest coverage ratio of FTI Consulting Inc has shown a consistently strong performance over the analyzed period. Starting from 14.61 in December 2020, the ratio increased to 15.68 by December 2021, indicating the company's ability to cover its interest expenses comfortably.
Furthermore, the interest coverage ratio improved significantly to 30.64 by the end of December 2022, demonstrating an enhanced capacity to meet interest obligations from operating income. This positive trend continued in subsequent years, reaching 26.01 by December 2023 and further escalating to 51.46 by December 2024.
The consistent increase in the interest coverage ratio highlights FTI Consulting Inc's strong profitability and financial stability, signaling a robust ability to service its debt obligations through earnings. This trend indicates a favorable financial position for the company and suggests a lower risk of default on interest payments in the foreseeable future.