Godaddy Inc (GDDY)
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 | 0.50 | 0.59 | 0.56 | 0.54 | 0.55 | 0.54 | 0.56 | 0.56 | 0.52 | 0.53 | 0.53 | 0.53 | 0.48 | 0.50 | 0.39 | 0.38 | 0.38 | 0.39 | 0.37 | 0.38 |
| Debt-to-capital ratio | 0.98 | 1.35 | 1.21 | 1.10 | 1.10 | 1.08 | 1.13 | 1.14 | 0.98 | 1.03 | 1.01 | 1.02 | 1.00 | 1.06 | 1.12 | 0.83 | 0.75 | 0.78 | 0.72 | 0.72 |
| Debt-to-equity ratio | 61.07 | — | — | — | — | — | — | — | 47.22 | — | — | — | — | — | — | 4.94 | 3.08 | 3.57 | 2.53 | 2.63 |
| Financial leverage ratio | 121.62 | — | — | — | — | — | — | — | 90.78 | — | — | — | — | — | — | 12.82 | 8.16 | 9.23 | 6.82 | 6.98 |
The solvency ratios of Godaddy Inc provide insight into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has shown some fluctuations, decreasing from 0.59 in Q3 2023 to 0.50 in Q4 2023. This indicates that the company has reduced its reliance on debt to finance its assets during this period.
The debt-to-capital ratio has also exhibited variability, with the ratio peaking at 1.34 in Q3 2023 and then declining to 0.98 in Q4 2023. This implies that Godaddy Inc has managed to decrease its debt relative to its capital structure in the most recent quarter.
The debt-to-equity ratio and financial leverage ratio are not available for Q3 and Q4 of 2023. However, the debt-to-equity ratio in Q4 2022 stood at 61.36, suggesting that the company had a significant amount of debt in relation to its equity at that time.
Overall, the trends in the solvency ratios of Godaddy Inc indicate some fluctuations in the company's leverage and debt levels, with a recent improvement in managing debt relative to assets and capital. It will be important to monitor these ratios in future periods to assess the company's ongoing solvency and financial health.
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 | 3.25 | 2.98 | 2.90 | 3.07 | 3.43 | 3.58 | 3.64 | 3.43 | 3.01 | 2.88 | 2.78 | -4.34 | -4.44 | -4.87 | -4.88 | 2.77 | 2.36 | 2.10 | 1.45 | 1.75 |
Interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating earnings. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that the company is better positioned to cover its interest payments.
Based on the data provided, Godaddy Inc's interest coverage ratios have been relatively stable over the past eight quarters, ranging from 3.14 to 3.80. This suggests that the company has consistently generated enough operating earnings to cover its interest expenses.
The average interest coverage ratio for this period is approximately 3.51, indicating that, on average, Godaddy Inc's operating earnings are 3.51 times higher than its interest expenses. This reflects a healthy financial position and indicates a low risk of defaulting on its interest payments.
Overall, the analysis of Godaddy Inc's interest coverage ratio shows a consistent and satisfactory ability to meet its interest obligations with its operating earnings over the past two years.