Hertz Global Holdings Inc (HTZ)
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 | 142.50 | 7.96 | 8.51 | 6.65 | 301.93 |
Hertz Global Holdings Inc has displayed very strong solvency ratios over the years, as indicated by the consistently low Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio, all of which remained at 0.00 from December 31, 2020, to December 31, 2024. This suggests that the company's level of debt relative to its assets, capital, and equity is effectively negligible, indicating a minimal financial risk from debt obligations.
The Financial leverage ratio, however, shows significant fluctuations over the same period. It was notably high at 301.93 on December 31, 2020, but decreased drastically to 6.65 by December 31, 2021. This trend continued with fluctuations as the ratio increased to 8.51 by December 31, 2022, decreased to 7.96 by December 31, 2023, and then spiked again to 142.50 by December 31, 2024. These fluctuations suggest varying levels of financial risk and dependence on debt financing over the years, highlighting the importance of monitoring the company's financial leverage closely.
Overall, the consistently low Debt-to-assets, Debt-to-capital, and Debt-to-equity ratios indicate Hertz Global Holdings Inc's strong financial position with minimal reliance on debt, while the fluctuations in the Financial leverage ratio point to changing levels of financial risk and leverage throughout the period under review.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -2.38 | 1.35 | 8.85 | 1.17 | -2.38 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a company is in a better position to meet its interest obligations.
In analyzing the interest coverage of Hertz Global Holdings Inc over the years provided, we observe fluctuations.
- As of December 31, 2020, the interest coverage ratio was negative at -2.38, indicating difficulties in meeting interest payments with operating income.
- By December 31, 2021, the ratio improved slightly to 1.17 but was still below the ideal level, suggesting a continued challenge in covering interest expenses effectively.
- The ratio significantly increased to 8.85 by December 31, 2022, indicating a substantial improvement in the company's ability to cover its interest payments.
- However, by the end of 2023, the ratio dropped to 1.35, signaling a decline in the company's capacity to cover interest charges efficiently.
- Lastly, as of December 31, 2024, the interest coverage ratio reverted to a negative figure of -2.38, indicating a potential return to financial difficulty in meeting interest obligations.
Overall, the trend in Hertz Global Holdings Inc's interest coverage shows mixed performance over the years, with notable improvements in some periods but fluctuations and challenges in others. Further analysis of the company's financial health and operational efficiency is recommended to fully evaluate its ability to manage debt and interest payments.