Grid Dynamics Holdings Inc (GDYN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.14 | 1.19 | 1.14 | 1.14 | 1.14 | 1.17 | 1.18 | 1.17 | 1.13 | 1.11 | 1.19 | 1.19 | 1.13 | 1.11 | 1.21 | 1.14 | 1.10 | 1.05 | 1.05 | 1.07 |
Grid Dynamics Holdings Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, which have all been at 0.00 over the period from March 31, 2020, to December 31, 2024. This suggests that the company's level of debt in relation to its assets, capital, and equity is minimal, indicating a low risk of financial distress.
Additionally, the financial leverage ratio, which reflects the company's level of debt relative to its equity, has remained relatively stable around the range of 1.05 to 1.21 during the same period. While there have been slight fluctuations, the ratio has generally stayed within a reasonable range, indicating that the company has been managing its debt effectively without taking on excessive leverage.
Overall, based on these solvency ratios, Grid Dynamics Holdings Inc appears to have a conservative capital structure and a healthy balance sheet, which bodes well for its long-term financial stability and viability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.07 | 1.31 | 0.72 | 1.02 | 0.64 | -3.43 | -3.08 | -5.25 | -7.27 | -6.35 | -9.32 | 0.72 | — | — | — | — | -3,240.80 | -772.70 | -52.70 | 728.80 |
Grid Dynamics Holdings Inc's interest coverage ratio has exhibited significant fluctuations over the period under review. As of March 31, 2020, the company reported a remarkably high interest coverage ratio of 728.80, indicating a strong ability to meet its interest obligations comfortably. However, the ratio plummeted to -52.70 as of June 30, 2020, and continued to deteriorate in the subsequent quarters, reaching alarming levels (e.g., -3,240.80 as of December 31, 2020).
The trend improved slightly in the following quarters of 2022 and 2023, albeit remaining negative, with values ranging from -9.32 to -3.08. By December 31, 2023, the interest coverage ratio had turned positive (0.64), suggesting a slight recovery. This positive momentum was sustained into the first half of 2024, with ratios ranging from 0.72 to 1.31 by September 30, 2024.
It is worth noting that despite the recent improvement, Grid Dynamics Holdings Inc's interest coverage ratio remains volatile and has not consistently provided a comfortable margin of safety to cover interest expenses. Further monitoring of the company's financial performance is advisable to assess the sustainability of this recovery and ensure its ability to meet its interest obligations in the long term.