Grid Dynamics Holdings Inc (GDYN)
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 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.14 | 1.14 | 1.13 | 1.13 | 1.10 |
Grid Dynamics Holdings Inc has consistently maintained a strong solvency position based on its solvency ratios over the past five years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the period, indicating that the company has not utilized debt extensively to finance its operations and that its assets are primarily financed by equity. This suggests a low financial risk and a healthy balance sheet structure.
The Financial leverage ratio has shown a slight increasing trend from 1.10 in 2020 to 1.14 in 2024. This indicates that the company's reliance on debt relative to equity has moderately increased over the years, but the ratio still remains at a level that is considered reasonable by industry standards. Overall, the solvency ratios suggest that Grid Dynamics Holdings Inc has a stable financial position and is effectively managing its debt levels to support sustainable growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | -36.85 | 0.02 | -5.31 |
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments.
Grid Dynamics Holdings Inc's interest coverage ratio has been concerning based on the financial data provided:
- As of December 31, 2020, the interest coverage ratio was -5.31, indicating that the company's operating income was insufficient to cover its interest expenses, raising solvency concerns.
- By December 31, 2021, the interest coverage ratio had improved slightly to 0.02, indicating a very marginal ability to cover interest payments.
- The ratio deteriorated significantly by December 31, 2022, to -36.85, suggesting a severe inability to meet interest obligations, which may raise default risk concerns.
- There is no data available for the years 2023 and 2024, denoted by "—," potentially indicating incomplete or missing financial information.
Given the negative and very low interest coverage ratios, Grid Dynamics Holdings Inc appears to face challenges in generating sufficient operating income to cover its interest expenses, highlighting a potential risk for bondholders and creditors. Further investigation into the company's financial health and debt management strategies may be warranted to assess its long-term viability.