Frontier Communications Parent Inc (FYBR)
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 | 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 | Dec 31, 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.54 | 0.55 | 0.51 | 0.51 | 0.49 | 0.50 | 0.51 | 0.47 | 0.48 | 0.00 | 0.65 | 0.65 | 0.65 | 0.63 | 1.00 | 0.93 | 0.93 | 0.93 | 0.71 | 0.69 |
| Debt-to-capital ratio | 0.68 | 0.68 | 0.65 | 0.66 | 0.64 | 0.65 | 0.66 | 0.63 | 0.63 | 0.00 | 1.79 | 1.81 | 1.82 | 1.87 | 1.35 | 1.37 | 1.34 | 1.30 | 0.92 | 0.91 |
| Debt-to-equity ratio | 2.13 | 2.15 | 1.89 | 1.91 | 1.77 | 1.85 | 1.90 | 1.70 | 1.73 | 0.00 | — | — | — | — | — | — | — | — | 10.77 | 10.22 |
| Financial leverage ratio | 3.92 | 3.91 | 3.69 | 3.76 | 3.63 | 3.70 | 3.76 | 3.58 | 3.58 | 3.06 | — | — | — | — | — | — | — | — | 15.22 | 14.79 |
Based on the solvency ratios of Frontier Communications Parent Inc over the past years, we can observe the following trends:
1. Debt-to-assets ratio: The company's debt-to-assets ratio has been relatively stable around 0.5 to 0.55, indicating that around 50-55% of the company's assets are financed by debt. This suggests that Frontier Communications Parent Inc relies moderately on debt to finance its operations and investments.
2. Debt-to-capital ratio: The debt-to-capital ratio has also been stable, hovering between 0.63 to 0.68. This ratio reflects the proportion of the company's capital that is financed by debt, showing a consistent level of leverage in the company's capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio, on the other hand, has shown more variation, ranging from 1.77 to 2.15. This indicates that the company's debt levels in relation to equity have fluctuated over time, with the latest ratio at 2.15 signaling a higher reliance on debt for financing compared to previous periods.
4. Financial leverage ratio: The financial leverage ratio has also exhibited fluctuations, moving between 3.58 to 3.92. This ratio demonstrates the extent to which the company uses debt to support its operations and investments, with higher values indicating higher financial risk due to increased reliance on debt financing.
Overall, Frontier Communications Parent Inc's solvency ratios suggest a moderate reliance on debt financing to support its operations, with fluctuations in debt levels in relation to assets, capital, and equity over the years. It is important for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity in its capital structure.
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 | 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 | Dec 31, 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.18 | 1.26 | 1.60 | 1.96 | 2.22 | 1.08 | 0.30 | 0.19 | — | 4.02 | 2.78 | 1.17 | 0.40 | 0.20 | -3.33 | -3.25 | -3.28 | -3.30 | 0.48 | 0.54 |
Interest coverage ratio is an important financial metric used to assess a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense incurred during a specific period.
Analyzing the historical interest coverage ratios of Frontier Communications Parent Inc reveals fluctuations in its ability to cover its interest expenses over time. The interest coverage ratio has experienced significant variability, ranging from negative values to positive values, which indicates changing levels of financial health and risk for the company.
In the most recent periods, specifically Dec 31, 2023, Sep 30, 2023, and Jun 30, 2023, Frontier Communications Parent Inc's interest coverage ratios have improved, indicating a better ability to cover its interest expenses. However, the ratios in the earlier periods, such as Dec 31, 2020, Sep 30, 2020, and Jun 30, 2020, were considerably low, indicating a higher risk of default on debt obligations.
Overall, the trend in Frontier Communications Parent Inc's interest coverage ratio has been volatile, suggesting fluctuations in its financial performance and ability to service its debt. It is essential for investors and analysts to closely monitor these ratios to gauge the company's financial stability and risk profile.