Helix Energy Solutions Group Inc (HLX)

The solvency ratios of Helix Energy Solutions Group Inc indicate the company's ability to meet its long-term financial obligations.

- The Debt-to-assets ratio has shown a slight increase over the past five years, suggesting that the company's proportion of debt relative to its total assets has been on a rising trend. However, the ratio remains relatively low, indicating that the company has a solid asset base to cover its debt obligations.

- The Debt-to-capital ratio has also been increasing over the years, indicating that the company is relying more on debt to finance its operations compared to its equity. This may imply a higher level of financial risk, but it is important to note that the ratio is still within reasonable limits.

- The Debt-to-equity ratio has shown some fluctuations over the years but has generally remained at moderate levels. This indicates that the company has a balanced mix of debt and equity in its capital structure, reducing the risk associated with excessive leverage.

- The Financial leverage ratio, which measures the company's total assets relative to its equity, has fluctuated over the years but has generally shown an increasing trend. This suggests that the company is utilizing more debt to fund its assets, which can potentially amplify returns but also increase financial risk.

Overall, the solvency ratios of Helix Energy Solutions Group Inc reflect a relatively stable financial position with manageable levels of debt and a strong asset base. However, the increasing trend in some of the ratios over the years may warrant close monitoring to ensure that the company's debt levels remain sustainable in the long term.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Looking at the data provided for Helix Energy Solutions Group Inc over the past five years, we can see fluctuations in the interest coverage ratio:

- In 2023, the interest coverage ratio improved significantly to 6.24, indicating that the company's operating income was more than sufficient to cover its interest expenses.

- In 2022 and 2021, the interest coverage ratios were negative, implying that the company's operating income was insufficient to cover its interest expenses. This situation raises concerns about the company's ability to meet its financial obligations.

- In 2020, the interest coverage ratio was 0.76, indicating a marginal ability to cover interest expenses. This suggests a precarious financial position where the company may struggle to meet its interest payments.

- In 2019, the interest coverage ratio was relatively high at 8.73, reflecting a strong ability to cover interest expenses with operating income.

Overall, the trend in Helix Energy Solutions Group Inc's interest coverage ratio shows fluctuations, with periods of strong coverage followed by periods of weakness. It is crucial for the company to consistently maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations.