Frontier Communications Parent Inc (FYBR)

Frontier Communications Parent Inc's solvency ratios provide insights into the company's financial health and its ability to meet its long-term financial obligations. Looking at the trends over the past five years:

1. Debt-to-assets ratio:
Frontier Communications Parent Inc's debt-to-assets ratio has fluctuated over the years but has generally been decreasing, indicating a lower reliance on debt to finance its assets. This suggests that the company's assets are increasingly financed through equity rather than debt, which can be viewed positively in terms of solvency and financial stability.

2. Debt-to-capital ratio:
The debt-to-capital ratio also shows a decreasing trend over the years, which indicates that the company is relying less on debt funding relative to its total capital structure. This trend suggests an improvement in the company's ability to use its own capital to support its operations and manage its debt obligations, thereby enhancing its solvency position.

3. Debt-to-equity ratio:
Frontier Communications Parent Inc's debt-to-equity ratio has been provided for the years 2021 and 2022. The increasing trend in this ratio reflects a higher level of debt relative to equity, indicating that the company has been more leveraged in these years. However, without the data for the other years, it is difficult to assess the overall trend and changes in solvency based on this ratio alone.

4. Financial leverage ratio:
The financial leverage ratio, depicting the extent to which a company uses debt to finance its operations, has shown an increasing trend over the years. This indicates that Frontier Communications Parent Inc has been increasingly relying on debt to support its business activities, possibly to fund investments or expansion. While a higher financial leverage ratio may indicate higher financial risk, it can also be a strategic decision depending on the company's growth objectives and market conditions.

Overall, based on the key solvency ratios analyzed, Frontier Communications Parent Inc appears to be gradually reducing its reliance on debt financing, which could enhance its financial stability and long-term viability. However, a complete assessment of the company's solvency position would require a more comprehensive analysis incorporating additional financial metrics and industry benchmarks.

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Coverage ratios

Frontier Communications Parent Inc's interest coverage ratio has fluctuated over the past five years, indicating the company's ability to cover its interest obligations with its earnings. In 2023, the interest coverage ratio decreased to 1.18, which may raise concerns about the company's ability to meet its interest payments from its operating income. This decrease from the previous year's ratio of 2.22 suggests a potential decrease in earnings relative to interest expenses.

The significant negative interest coverage ratios in 2021 and 2019 (-280.16 and -3.25, respectively) raise red flags as they indicate that the company's earnings were insufficient to cover its interest expenses during those years. This could signal financial distress and potential difficulties in meeting debt obligations.

The positive interest coverage ratios in 2020 and 2022 (0.36 and 2.22, respectively) show some improvement compared to the negative ratios in other years, but they still indicate a relatively low ability to cover interest payments with operating income.

Overall, the trend in Frontier Communications Parent Inc's interest coverage ratio suggests fluctuations in its financial performance and highlights the importance of monitoring its ability to generate sufficient earnings to cover its interest expenses in the future.