Gen Digital Inc. (GEN)

Gen Digital Inc. exhibits a strong solvency position based on its solvency ratios. The Debt-to-assets ratio has consistently remained at 0.00 over the past few years, indicating that the company has no long-term debt in relation to its total assets. Similarly, the Debt-to-capital and Debt-to-equity ratios have shown a similar trend, staying at 0.00 for the years reported. This implies that Gen Digital has not relied on debt financing to fund its operations and growth.

The Financial leverage ratio, which measures the company's use of debt to finance its assets, was reported at 7.25 in 2023 and slightly decreased to 7.18 in 2024. This suggests that the company has a moderate level of financial leverage compared to its equity. However, the ratio is not provided for the most recent year, making it difficult to assess the current leverage position.

Overall, Gen Digital Inc. appears to have a stable and conservative capital structure with minimal reliance on debt financing. The consistent zeros in the debt-related ratios indicate a healthy balance sheet position, which can enhance the company's financial stability and flexibility in managing future growth opportunities.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio is generally seen as favorable as it indicates that the company has sufficient earnings to cover its interest expenses.

For Gen Digital Inc., the interest coverage ratio has fluctuated over the years. In March 31, 2021, the ratio was at 7.06, which indicated that the company's earnings were sufficient to cover its interest payments comfortably. The ratio improved in the following year to 9.27, suggesting even stronger ability to cover interest expenses.

However, the interest coverage ratio declined significantly in March 31, 2023, dropping to 3.00. This decrease may indicate potential challenges in meeting interest obligations with current earnings. The ratio further decreased to 1.71 in March 31, 2024, signaling a notable decrease in the ability to cover interest payments.

Lastly, in March 31, 2025, the interest coverage ratio reached 0.00, implying that the company's earnings were not enough to cover its interest expenses, raising concerns about the company's financial health in meeting its debt obligations.

Overall, Gen Digital Inc.'s interest coverage ratio has shown varying trends, with fluctuations in its ability to cover interest payments over the years. This highlights the importance of closely monitoring the company's financial performance and debt management strategies to ensure sustainable operations.