Jacobs Solutions Inc. (J)

Solvency ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.11 0.14 0.15 0.19 0.19 0.21 0.23 0.23 0.23 0.24 0.21 0.21 0.19 0.20 0.22 0.14 0.14 0.17 0.24 0.12
Debt-to-capital ratio 0.23 0.24 0.25 0.30 0.30 0.33 0.35 0.36 0.36 0.37 0.34 0.34 0.32 0.33 0.36 0.23 0.22 0.27 0.36 0.19
Debt-to-equity ratio 0.30 0.32 0.33 0.42 0.43 0.48 0.53 0.56 0.55 0.59 0.53 0.51 0.48 0.50 0.57 0.29 0.29 0.37 0.56 0.24
Financial leverage ratio 2.58 2.27 2.25 2.24 2.23 2.29 2.35 2.41 2.42 2.48 2.50 2.44 2.46 2.47 2.59 2.09 2.12 2.16 2.36 2.03

Based on the solvency ratios of Jacobs Solutions Inc. over the past few years, we can observe the following trends:

1. Debt-to-assets ratio: The debt-to-assets ratio has generally been decreasing, indicating that the company has been reducing its reliance on debt to finance its assets. This trend suggests that Jacobs Solutions Inc. has been managing its debt levels effectively, which is a positive sign for solvency.

2. Debt-to-capital ratio: The debt-to-capital ratio has also shown a decreasing trend over the years. This indicates that the company's capital structure has become less reliant on debt and more balanced with equity. A decreasing debt-to-capital ratio is generally considered favorable as it reduces financial risk and enhances solvency.

3. Debt-to-equity ratio: The debt-to-equity ratio has been fluctuating but has shown a decreasing trend overall. This suggests that Jacobs Solutions Inc. has been gradually reducing its debt relative to equity, which is positive for long-term financial stability and solvency. A declining debt-to-equity ratio indicates improved financial health and reduced risk of financial distress.

4. Financial leverage ratio: The financial leverage ratio has fluctuated over the years but has generally remained within a reasonable range. While there have been some fluctuations, the company's financial leverage does not appear to be excessively high, indicating that it has been managing its debt levels responsibly. A stable financial leverage ratio is crucial for maintaining solvency and financial stability.

Overall, the analysis of Jacobs Solutions Inc.'s solvency ratios suggests that the company has been effectively managing its debt and capital structure in a prudent manner. The decreasing trends in the debt-to-assets, debt-to-capital, and debt-to-equity ratios reflect a positive trajectory towards improved financial health and enhanced solvency. Furthermore, the stable financial leverage ratio indicates that the company has maintained a reasonable level of leverage to support its operations.

Coverage ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage 5.50 5.64 5.72 5.85 6.13 6.75 7.75 7.95 9.03 9.82 10.34 8.60 9.46 6.87 5.99 9.25 8.62 10.51 8.60 6.04

Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. Jacobs Solutions Inc.'s interest coverage has shown a generally positive trend over the past few quarters. The ratio has consistently been above 1, indicating that the company is generating enough operating income to cover its interest expenses.

The interest coverage ratio has improved steadily from 5.50 in September 2020 to 10.34 in March 2022, indicating a significant increase in the company's ability to cover its interest payments. Subsequently, there was a slight decline in the ratio, with fluctuations between 8.60 and 9.25 in the following quarters.

Overall, Jacobs Solutions Inc.'s interest coverage ratio reflects a healthy financial position, as the company has consistently earned enough operating income to comfortably cover its interest expenses. This trend suggests that the company has a strong ability to meet its debt obligations and indicates a lower risk of default.