Hertz Global Holdings Inc (HTZ)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
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 7.96 7.54 9.19 8.56 8.51 7.86 8.09 7.75 6.65 4.66 5.25 62.68 301.93 55.01 41.35 18.84 13.92 13.63 27.34 26.06

Solvency ratios provide insights into a company's ability to meet its long-term debt obligations. Looking at the solvency ratios for Hertz Global Holdings Inc. over the past five quarters, we observe the following trends:

1. Debt-to-assets ratio:
The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Hertz Global Holdings Inc. has maintained a relatively stable debt-to-assets ratio around 0.62 to 0.64 over the past year. This indicates that approximately 62% to 64% of the company's assets are financed through debt.

2. Debt-to-capital ratio:
The debt-to-capital ratio reflects the percentage of a company's capital that comes from debt. Hertz Global Holdings Inc. has also shown consistency in this ratio, hovering around 0.83 to 0.85. This indicates that debt constitutes around 83% to 85% of the company's total capital structure.

3. Debt-to-equity ratio:
The debt-to-equity ratio compares the total debt of a company to its shareholders' equity. Hertz Global Holdings Inc. has seen fluctuations in its debt-to-equity ratio, ranging from 4.72 to 5.84 over the past five quarters. This indicates that the company has been relying more on debt financing relative to equity during some quarters.

4. Financial leverage ratio:
The financial leverage ratio measures the extent to which a company uses debt to finance its operations. Hertz Global Holdings Inc. has experienced variations in its financial leverage ratio, with values ranging from 7.54 to 9.19. A higher financial leverage ratio suggests a higher level of financial risk due to increased reliance on debt to fund operations.

Overall, while Hertz Global Holdings Inc. has maintained relatively stable debt-to-assets and debt-to-capital ratios, its debt-to-equity ratio and financial leverage ratio have shown more variability. Investors and creditors should closely monitor these solvency ratios to assess the company's ability to manage its debt levels and meet its long-term financial obligations.


Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 5.69 16.36 18.44 35.91 47.21 43.88 48.04 10.82 6.61 4.06 -3.15 -14.37 -28.19 -35.55 -23.81 -3.18 1.06 1.06 0.85 0.41

Hertz Global Holdings Inc.'s interest coverage ratio has been declining over the past five quarters. The interest coverage ratio, which measures the company's ability to cover its interest expenses with operating income, decreased from 6.33 in Q4 2022 to 0.97 in Q4 2023. This downward trend indicates that the company's ability to meet its interest obligations has weakened significantly. A declining interest coverage ratio is often considered a red flag as it may suggest increasing financial risk and potential difficulties in meeting debt obligations. Hertz Global Holdings Inc. should closely monitor its interest coverage ratio and take proactive measures to improve its financial health and stability.