Kelly Services A Inc (KELYA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.06 | 2.12 | 2.17 | 2.13 | 1.96 |
Based on the provided solvency ratios for Kelly Services, Inc., it is evident that the company has maintained a consistent trend of having minimal debt relative to its assets, capital, and equity over the past five years, as indicated by the ratios of 0.00. This signifies the company's ability to finance its operations primarily through equity or retained earnings rather than relying heavily on debt.
On the other hand, the financial leverage ratio has fluctuated slightly over the same period, ranging from 1.96 to 2.17. The latest ratio of 2.06 suggests that Kelly Services has a moderate level of financial leverage, indicating that a portion of its assets is financed through debt. This ratio measures the proportion of the company's assets that are funded by debt compared to equity, and the current ratio of 2.06 indicates that the company has slightly increased its reliance on debt financing compared to previous years.
Overall, the solvency ratios suggest that Kelly Services, Inc. has effectively managed its financial structure by maintaining low levels of debt in relation to its assets, capital, and equity, while also utilizing a moderate amount of leverage to support its operations and growth initiatives.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.78 | -32.52 | 77.48 | -34.33 | 27.86 |
The interest coverage ratio of Kelly Services, Inc. for the fiscal years presented in the table has shown some variability. In 2022, the interest coverage ratio was 23.48, indicating that the company generated 23.48 times more earnings before interest and taxes (EBIT) than the amount needed to cover its interest expense for that year. This was a significant improvement from the previous year, 2021, where the interest coverage ratio was 9.50.
The 2023 data is not available from the table provided. However, when compared to the data from 2019, where the interest coverage ratio was 26.35, it indicates a slight decline in the company's ability to cover its interest expenses with operating profits in 2022.
Overall, it is important for stakeholders to monitor Kelly Services, Inc.'s interest coverage ratio over time to assess its ability to meet its interest obligations and manage its debt effectively.