Forward Air Corporation (FWRD)
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 | 0.00 | 0.10 | 0.10 | 0.12 | 0.09 | 0.09 | 0.12 | 0.13 | 0.14 | 0.00 | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.00 | 0.07 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.15 | 0.15 | 0.18 | 0.13 | 0.14 | 0.18 | 0.20 | 0.21 | 0.00 | 0.00 | 0.00 | 0.17 | 0.00 | 0.00 | 0.00 | 0.10 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.18 | 0.18 | 0.22 | 0.15 | 0.16 | 0.22 | 0.25 | 0.26 | 0.00 | 0.00 | 0.00 | 0.21 | 0.00 | 0.00 | 0.00 | 0.12 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.90 | 1.79 | 1.76 | 1.79 | 1.71 | 1.74 | 1.80 | 1.91 | 1.88 | 1.93 | 1.97 | 1.86 | 1.91 | 1.90 | 1.89 | 1.88 | 1.72 | 1.75 | 1.70 | 1.60 |
The solvency ratios of Forward Air Corporation indicate its ability to meet its long-term financial obligations. Looking at the debt-to-assets ratio, we can see that it remained relatively stable around 0.10 to 0.14 over the period, suggesting the company has effectively managed its debt levels in relation to its assets.
The debt-to-capital and debt-to-equity ratios show a similar stable trend, with values hovering between 0.15 to 0.21 and 0.18 to 0.26 respectively. These ratios indicate the proportion of debt in the company's capital structure and its effect on shareholders' equity. The company has maintained a balanced mix of debt and equity financing, which is essential for financial stability.
Analyzing the financial leverage ratio, we observe fluctuations over time but generally within a reasonable range from 1.70 to 1.97. This ratio reflects the company's reliance on debt to finance its operations, with a higher ratio indicating higher financial leverage. Forward Air Corporation has managed its financial leverage effectively, although there was a slight increase in leverage in some periods.
Overall, based on the solvency ratios provided, Forward Air Corporation appears to have maintained a healthy financial position with manageable levels of debt and leverage to support its long-term sustainability and meet its financial obligations.
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 | 6.74 | 17.11 | 26.39 | 38.62 | 51.77 | 710.63 | — | — | 487.71 | 20.56 | 16.73 | 10.13 | 9.84 | 18.32 | 23.07 | 35.30 | 43.34 | 50.12 | 56.85 | 61.03 |
The interest coverage ratio for Forward Air Corporation has shown significant fluctuations over the periods analyzed. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
Looking at the data, we observe that the interest coverage ratio has been above 1 for all periods, which indicates that the company is generating enough operating income to cover its interest expenses. A higher interest coverage ratio is generally favorable as it indicates a company's better ability to meet interest payments.
In analyzing the trend, we note that there are some periods where the interest coverage ratio experienced a substantial increase, such as in December 2022 and March 2023, with ratios of 710.63 and 38.62, respectively. These high ratios suggest that the company's operating income significantly exceeded its interest expenses during those periods.
However, there are also periods, like June 2022 and December 2021, where the interest coverage ratio decreased to lower levels, indicating a potential decrease in operating income relative to interest expenses. It is important for the company to maintain a healthy interest coverage ratio to ensure financial stability and the ability to meet debt obligations.
Moreover, the extremely high interest coverage ratio of 710.63 in September 2022 appears to be an outlier in the data and may require further investigation to understand the reasons behind such a substantial increase.
Overall, the analysis of Forward Air Corporation's interest coverage ratio indicates variability in the company's ability to cover its interest expenses with operating income, emphasizing the importance of consistent monitoring and management of financial leverage.