Gen Digital Inc. (GEN)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jul 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.53 | 0.56 | 0.57 | 0.59 | 0.60 | 0.63 | 0.62 | 0.43 | 0.39 | 0.40 | 0.41 | 0.52 | 0.52 | 0.56 | 0.56 | 0.44 | 0.45 | 0.20 | 0.20 | 0.26 |
| Debt-to-capital ratio | 0.79 | 0.79 | 0.79 | 0.80 | 0.81 | 0.88 | 0.85 | 1.12 | 1.04 | 1.04 | 1.09 | 1.17 | 1.18 | 1.16 | 1.15 | 1.22 | 1.00 | 0.30 | 0.34 | 0.43 |
| Debt-to-equity ratio | 3.84 | 3.76 | 3.87 | 3.99 | 4.33 | 7.50 | 5.82 | — | — | — | — | — | — | — | — | — | 346.50 | 0.43 | 0.53 | 0.76 |
| Financial leverage ratio | 7.18 | 6.73 | 6.80 | 6.76 | 7.25 | 11.83 | 9.35 | — | — | — | — | — | — | — | — | — | 773.50 | 2.14 | 2.66 | 2.93 |
Gen Digital Inc.'s solvency ratios have shown fluctuations over the periods analyzed. The debt-to-assets ratio has ranged between 0.39 and 0.63, indicating that between 39% and 63% of the company's assets were financed by debt. The trend in this ratio suggests a relatively stable level of debt relative to assets over time.
The debt-to-capital ratio has fluctuated between 0.79 and 1.22, indicating that debt has comprised between 79% and 122% of the company's capital structure. This ratio has shown more variability compared to the debt-to-assets ratio, possibly indicating shifts in the company's capital financing mix over time.
The debt-to-equity ratio has exhibited significant variability, ranging from 3.76 to 346.50. The extreme values in this ratio suggest potential irregularities or outliers in the data. Further investigation may be needed to understand the factors driving these fluctuations.
The financial leverage ratio has also shown significant variability, ranging from 6.73 to 773.50. Similar to the debt-to-equity ratio, the extreme values in this ratio indicate potential abnormalities that warrant closer inspection to determine the underlying reasons for such fluctuations.
Overall, while the debt-to-assets ratio suggests a relatively stable debt level relative to assets, the significant variability in the debt-to-equity ratio and financial leverage ratio raises some concerns about the company's solvency and financial stability. Further analysis and scrutiny of the financial statements are recommended to gain a deeper understanding of Gen Digital Inc.'s solvency position.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jul 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.68 | 1.60 | 1.67 | 2.46 | 3.06 | 3.78 | 6.57 | 7.83 | 7.98 | 8.78 | 8.62 | 7.82 | 6.22 | 4.24 | 2.56 | 1.79 | 1.81 | 1.94 | 1.92 | 1.55 |
Gen Digital Inc.'s interest coverage ratio has shown significant fluctuations over the past few quarters, ranging from a low of 1.60 to a high of 8.78. The interest coverage ratio measures a company's ability to meet interest payments on its debt obligations, with higher ratios indicating a stronger ability to cover interest expenses.
In the most recent quarter ending March 31, 2024, the interest coverage ratio was 1.68, which is lower compared to the previous quarter but still above 1, indicating that the company generated enough operating income to cover its interest expenses. However, the downward trend in the ratio over the past few quarters raises some concerns about the company's ability to meet its interest obligations from its operating income.
It is worth noting that Gen Digital Inc. had higher interest coverage ratios in the earlier quarters, suggesting that the company was more comfortably meeting its interest payments at that time. The significant decline in the interest coverage ratio from the high of 8.78 in the quarter ending Dec 31, 2021, to the low of 1.60 in the quarter ending Dec 31, 2023, may indicate a deterioration in the company's financial health and profitability.
Overall, a declining trend in the interest coverage ratio could signal potential financial distress for Gen Digital Inc., and investors and creditors may want to monitor this ratio closely to assess the company's ability to meet its debt obligations in the future.