Forward Air Corporation (FWRD)
Solvency ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 11.61 | 11.61 | 13.52 | 10.81 | 4.28 | 3.98 | 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 |
The solvency ratios of Forward Air Corporation indicate a very strong financial position in terms of debt management and capital structure. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at 0.00 over the past several quarters, reflecting that the company has no debt relative to its assets, capital, and equity.
The financial leverage ratio, which measures the company's level of debt relative to its equity, has shown fluctuations over the quarters. The ratio started at 1.89 in June 2020, gradually increased, reaching its peak at 13.52 in September 2024, and then decreased to 11.61 by March 2025. The significant increase in the financial leverage ratio in the latter part of 2023 and in 2024 could indicate a temporary increase in debt levels or a decrease in equity, which may warrant further investigation.
Overall, the consistent low or zero debt ratios suggest that Forward Air Corporation has a conservative debt management policy and a strong ability to cover its financial obligations, indicating a stable and secure financial position. However, the fluctuations in the financial leverage ratio in recent quarters may warrant monitoring to ensure the company's financial stability in the future.
Coverage ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -4.64 | -5.61 | -6.90 | -9.96 | -0.25 | 3.14 | 17.11 | 26.39 | 38.62 | 51.77 | 58.33 | 59.41 | 49.01 | 36.72 | 27.44 | 21.82 | 16.86 | 16.08 | 20.59 | 25.68 |
Based on the provided data, the interest coverage ratio of Forward Air Corporation has shown a declining trend over the period from June 30, 2020, to March 31, 2025. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
Initially, the interest coverage ratio was robust at 25.68 as of June 30, 2020. However, it started declining gradually and reached its lowest point at -9.96 as of June 30, 2024. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses during those periods.
Subsequently, there was a slight improvement in the interest coverage ratio, which increased to -4.64 as of March 31, 2025. Despite this increase, the company still had negative interest coverage, implying ongoing financial challenges with respect to managing its interest obligations.
Overall, the declining trend in the interest coverage ratio of Forward Air Corporation signifies a potential strain on the company's financial health and its ability to service its debt obligations effectively. It is crucial for the company to closely monitor its interest coverage ratio and take necessary steps to improve its financial position and ensure long-term sustainability.