Graham Holdings Co (GHC)
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 | 1.80 | 1.85 | 1.82 | 1.79 | 1.81 | 1.81 | 1.73 | 1.75 | 1.76 | 1.71 | 1.66 | 1.65 | 1.69 | 1.69 | 1.66 | 1.69 | 1.71 | 1.79 | 1.77 | 1.76 |
Graham Holdings Co maintains a strong solvency position, as indicated by its consistently low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, all of which have remained at 0.00 throughout the reporting periods from March 2020 to December 2024. This signifies that the company's debt levels are minimal in relation to its assets, capital, and equity, reflecting a conservative financial structure.
In terms of financial leverage, the company's financial leverage ratio has fluctuated slightly over the reporting periods, ranging from 1.65 to 1.85. While there have been some variations, the ratio has generally stayed within a moderate range, indicating that Graham Holdings Co has been able to maintain a healthy balance between debt and equity in its capital structure.
Overall, the solvency ratios suggest that Graham Holdings Co has a stable and sustainable financial position, with a low reliance on debt financing and a prudent approach to managing its leverage levels.
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 | 6.36 | 2.81 | 2.98 | 7.26 | 6.38 | 7.68 | 6.94 | 2.07 | 3.23 | 5.07 | 4.98 | 12.58 | 14.23 | 17.10 | 19.86 | 17.34 | 11.15 | 9.69 | 8.18 | 8.35 |
The interest coverage ratio of Graham Holdings Co has shown fluctuating trends over the reviewed periods. The ratio indicates the company's ability to meet interest obligations on its outstanding debt from its operating income.
From March 2020 to September 2021, Graham Holdings Co had a consistently healthy interest coverage ratio ranging from 8.35 to 17.10, indicating a strong ability to cover interest payments from its earnings. This suggests a good financial health and lower risk of default on its debt obligations during this period.
However, in the following quarters, particularly from June 2022 to June 2024, the interest coverage ratio declined significantly, reaching as low as 2.81. This may indicate a lower capacity to cover interest expenses with operating income, potentially raising concerns about the company's ability to service its debt effectively.
It is important for stakeholders to closely monitor the interest coverage ratio of Graham Holdings Co, as a declining trend could signal increasing financial risk and the need for management to address any issues affecting the company's ability to generate sufficient earnings to cover its interest payments.