Helix Energy Solutions Group Inc (HLX)

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. The debt-to-assets ratio for Helix Energy Solutions Group Inc has been relatively stable over the past eight quarters, fluctuating between 0.09 and 0.14. This indicates that, on average, the company's debt represents around 9% to 14% of its total assets, suggesting a conservative level of leverage.

Similarly, the debt-to-capital ratio has also shown consistency, ranging from 0.13 to 0.19 over the same period. This ratio reflects the proportion of total capital that is financed by debt, with Helix Energy Solutions maintaining a level of debt that represents between 13% and 19% of its total capital.

The debt-to-equity ratio, which compares total debt to shareholders' equity, has exhibited stability between 0.15 and 0.24 over the past two years. This ratio highlights the extent to which the company relies on debt financing compared to equity, with Helix Energy Solutions maintaining a level of debt that represents between 15% and 24% of its equity.

Lastly, the financial leverage ratio, which measures the proportion of total assets that is financed by debt, has also remained relatively consistent for the company, ranging from 1.45 to 1.70 over the past eight quarters. This suggests that Helix Energy Solutions maintains a balanced capital structure, with debt representing around 145% to 170% of its total assets.

Overall, the solvency ratios indicate that Helix Energy Solutions Group Inc has managed its debt levels prudently, maintaining a healthy balance between debt and equity financing to support its long-term financial stability and meet its obligations effectively.

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Coverage ratios

Interest coverage is a key financial ratio that indicates a company's ability to cover its interest payments with its operating income. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations.

Analyzing the interest coverage ratio of Helix Energy Solutions Group Inc over the past eight quarters, we observe a fluctuating trend. In Q4 2023, the interest coverage ratio improved significantly to 6.24, indicating that the company's operating income was 6.24 times its interest expense for that quarter. This indicates a strong ability to cover interest payments.

In the previous quarters, the interest coverage ratios varied with values of 5.59 in Q3 2023, 3.31 in Q2 2023, and 0.90 in Q1 2023, which also indicate that the company was able to cover its interest payments. However, there was a significant decline in the interest coverage ratio in Q4 2022 to -0.75, which suggests that the company's operating income was negative during that period, rendering it unable to cover its interest expenses.

Furthermore, in Q3 2022, Q2 2022, and Q1 2022, the interest coverage ratios were negative at -2.57, -3.65, and -3.48 respectively. These negative values indicate that the company's operating income was insufficient to cover its interest expenses during those quarters.

Overall, the increasing interest coverage ratios in the recent quarters reflect a positive trend in Helix Energy Solutions Group Inc's ability to cover its interest payments with its operating income. However, it is important to closely monitor this ratio to ensure that the company maintains a healthy financial position and is able to meet its debt obligations in the future.