Helix Energy Solutions Group Inc (HLX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.71 | 1.70 | 1.58 | 1.41 | 1.44 |
Based on the provided data for Helix Energy Solutions Group Inc, across the years 2020 to 2024, the solvency ratios indicate a strong financial position in terms of debt management and leverage.
1. Debt-to-assets ratio: The company consistently maintains a low debt-to-assets ratio of 0.00, indicating that it has minimal debt in relation to its total assets. This suggests that the company relies more on equity financing rather than debt to fund its operations and investments.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 for all the years, indicating that the company's capital structure is not heavily reliant on debt. This ratio shows the proportion of debt in the company's capital structure compared to equity.
3. Debt-to-equity ratio: The debt-to-equity ratio also remains at 0.00 consistently over the years, which reflects the company's low level of debt in relation to its equity. A low debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and a stronger financial position.
4. Financial leverage ratio: The financial leverage ratio shows a slight increasing trend from 1.44 in 2020 to 1.71 in 2024. This ratio indicates the extent to which the company relies on debt to finance its assets. Despite the increasing trend, the ratios are still relatively low, suggesting that Helix Energy Solutions Group Inc has a conservative approach to leveraging its investments.
In summary, based on the solvency ratios analyzed, Helix Energy Solutions Group Inc demonstrates a conservative financial strategy with minimal reliance on debt financing, resulting in a strong and stable financial position over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.42 | 1.35 | -2.90 | -2.03 | 1.08 |
Interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. A ratio below 1 suggests that the company is not generating enough operating income to cover its interest payments.
Examining Helix Energy Solutions Group Inc's interest coverage ratio over the past five years reveals a fluctuating trend. As of December 31, 2020, the interest coverage ratio stood at 1.08, indicating that the company barely had enough operating income to cover its interest expenses.
However, in the subsequent years, the interest coverage ratio deteriorated significantly. By December 31, 2021, the ratio had dropped to -2.03, which suggests that the company's operating income was insufficient to cover its interest payments, resulting in a negative coverage. This negative trend continued in the following years, with the interest coverage ratios for December 31, 2022, and December 31, 2023, standing at -2.90 and 1.35, respectively.
On a positive note, by December 31, 2024, the interest coverage ratio improved to 3.42, indicating that the company's operating income was more than sufficient to cover its interest expenses.
Overall, Helix Energy Solutions Group Inc's interest coverage ratio has shown volatility and inconsistency over the past five years, with periods of inadequate coverage followed by a notable improvement in the most recent year. This fluctuation may indicate varying levels of financial risk and operating performance within the company. Further analysis of the company's financial health and operational efficiency is recommended to better understand the factors contributing to these fluctuations in the interest coverage ratio.