Comfort Systems USA Inc (FIX)

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 0.01 0.01 0.05 0.07 0.10 0.15 0.17 0.18 0.17 0.14 0.09 0.10 0.13 0.13 0.14 0.21 0.14 0.16 0.20 0.07
Debt-to-capital ratio 0.03 0.03 0.11 0.16 0.20 0.28 0.31 0.32 0.32 0.26 0.17 0.19 0.25 0.25 0.27 0.36 0.26 0.29 0.35 0.13
Debt-to-equity ratio 0.03 0.03 0.12 0.19 0.25 0.40 0.45 0.47 0.48 0.35 0.21 0.24 0.34 0.33 0.37 0.56 0.35 0.41 0.53 0.14
Financial leverage ratio 2.59 2.60 2.62 2.70 2.60 2.68 2.72 2.63 2.74 2.53 2.33 2.37 2.52 2.51 2.67 2.73 2.57 2.63 2.71 2.10

Comfort Systems USA, Inc. has demonstrated a consistent improvement in its solvency ratios over the quarters analyzed. The debt-to-assets ratio has shown a decreasing trend, indicating that the company's level of debt relative to its total assets has declined over time, reflecting a stronger financial position. Similarly, the debt-to-capital and debt-to-equity ratios have also shown a decreasing trend, indicating that the company has been relying less on debt financing and has been strengthening its capital structure.

The financial leverage ratio, which measures the company's reliance on debt to finance its operations, has shown slight fluctuations but has generally remained within a reasonable range. This ratio indicates that the company has been able to effectively manage its debt levels relative to its equity, which is a positive sign from a solvency perspective.

Overall, the improving trend in Comfort Systems USA, Inc.'s solvency ratios suggests that the company's financial health has been strengthening, with a lower reliance on debt and a more solid financial footing. This can be seen as a positive indicator of the company's ability to meet its financial obligations and withstand economic challenges.

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 38.76 24.96 19.26 18.25 18.66 21.60 24.96 29.23 31.71 33.65 32.38 28.85 23.84 20.56 17.66 14.74 17.29 18.63 23.67 39.62

Comfort Systems USA, Inc.'s interest coverage has exhibited fluctuations over the past eight quarters. The interest coverage ratio, which provides insight into the company's ability to meet interest payments on its debt obligations, reached its highest level in Q4 2023 at 77.34. This significant increase indicates that the company's earnings before interest and taxes (EBIT) have improved substantially compared to its interest expenses.

Despite the peak in Q4 2023, the interest coverage ratio has shown varying levels of performance in preceding quarters, with Q2 2022 also standing out with a relatively high ratio of 24.14. This suggests a favorable ability to cover interest obligations during that period. However, there have been instances of lower interest coverage ratios in Q1 and Q3 of 2023, which may raise some concerns about the company's ability to service its debt during those specific quarters.

Overall, while the interest coverage ratio for Comfort Systems USA, Inc. has demonstrated fluctuations, the recent peak in Q4 2023 indicates a strong improvement in the company's capacity to meet interest obligations. It is important for stakeholders to monitor this ratio consistently to assess the company's financial health and ability to manage its debt effectively.