Gen Digital Inc. (GEN)
Solvency ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — | — | — | — | — | — | — | — |
| 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 | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 6.83 | 7.14 | 7.37 | 7.83 | 7.18 | 6.73 | 6.80 | 6.76 | 7.25 | 11.83 | 9.35 | — | — | — | — | — | — | — | — | — |
Gen Digital Inc. has consistently maintained a debt-to-assets ratio of 0.00 over the entire period, indicating that the company does not rely heavily on debt to finance its assets.
The debt-to-capital and debt-to-equity ratios were not calculated for the period up to September 30, 2022. However, from September 30, 2022 onwards, both ratios were at 0.00, suggesting that the company's capital and equity were not significantly funded by debt.
The financial leverage ratio, which measures the company's total assets in relation to shareholders' equity, shows a decreasing trend from 9.35 on September 30, 2022, to 6.83 on March 31, 2025. This indicates an improvement in the company's ability to generate profits from its assets and manage its debt levels efficiently over the period.
Overall, Gen Digital Inc. demonstrates strong solvency ratios, with low or zero debt levels in relation to its assets, capital, and equity. The decreasing financial leverage ratio also indicates the company's improving financial stability and capacity to support its operations and growth with internal resources.
Coverage ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.07 | 2.59 | 2.49 | 1.83 | 1.69 | 1.62 | 1.66 | 2.40 | 2.95 | 3.70 | 6.47 | 9.25 | 9.37 | 10.59 | 10.48 | 8.62 | 7.17 | 6.39 | 6.66 | 5.45 |
Gen Digital Inc.'s interest coverage ratio has fluctuated over the past five years. The interest coverage ratio is a measure of the company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations.
From June 2020 to September 2021, Gen Digital Inc.'s interest coverage showed an improving trend, with the ratio steadily increasing from 5.45 to 10.48. This indicates that the company's earnings were more than sufficient to cover its interest expenses during this period.
However, starting from December 2021, the interest coverage ratio began to decline. By June 2024, the ratio had decreased to 1.83, indicating that the company's earnings were barely enough to cover its interest payments. This downward trend could be a cause for concern as it suggests that Gen Digital Inc. may be facing challenges in generating enough income to cover its interest expenses.
Overall, it is important for stakeholders to closely monitor Gen Digital Inc.'s interest coverage ratio to ensure the company remains financially sustainable and able to meet its debt obligations.