Frontier Communications Parent Inc (FYBR)
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 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 8.17 | 3.92 | 3.63 | 3.58 | — |
Frontier Communications Parent Inc has shown consistently strong solvency ratios over the years, with a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all at 0.00 as of December 31 in each year from 2020 to 2024. This indicates that the company has been able to fund its operations primarily through equity rather than debt.
The financial leverage ratio, which provides a measure of the company's total debt relative to its equity, shows a significant increase from 3.58 in 2021 to 8.17 in 2024. This increase suggests that the company's reliance on debt has grown substantially over the period, raising questions about its financial risk and leverage position.
Overall, while Frontier Communications Parent Inc has maintained very low debt ratios in terms of its assets, capital, and equity, the notable increase in the financial leverage ratio indicates a shift towards higher debt levels relative to equity in recent years, highlighting the need for careful monitoring of the company's financial health and risk management strategies going forward.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.57 | 1.18 | 2.22 | 4,455.25 | 17,651.52 |
Frontier Communications Parent Inc's interest coverage ratio has displayed a significant downward trend over the years, indicating a deterioration in the company's ability to cover its interest expenses with operating income. The ratio stood at an exceptionally high level of 17,651.52 as of December 31, 2020, suggesting a robust capacity to meet interest obligations. However, this ratio declined considerably to 4,455.25 by December 31, 2021, which still implies a relatively comfortable position.
Subsequently, the interest coverage ratio experienced a substantial drop to 2.22 as of December 31, 2022, indicating a significant reduction in the company's ability to cover interest expenses. This declining trend continued over the following years, with ratios of 1.18 and 0.57 recorded as of December 31, 2023 and December 31, 2024, respectively. These lower ratios suggest a heightened risk regarding Frontier Communications Parent Inc's ability to meet its interest payments from operating income.
Overall, the decreasing trend in interest coverage ratios indicates potential financial distress for Frontier Communications Parent Inc, as the company may struggle to generate sufficient operating income to cover its interest expenses in the future. It is crucial for investors and stakeholders to closely monitor the company's financial performance and evaluate its ability to manage debt obligations effectively.