Leidos Holdings Inc (LDOS)
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 | 3.02 | 3.04 | 3.09 | 3.24 | 2.74 |
The solvency ratios of Leidos Holdings Inc show a consistent pattern of low debt levels in relation to its assets, capital, and equity over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have remained at 0.00 each year, indicating that the company has not taken on significant debt in relation to its total assets, capital, or equity.
On the other hand, the financial leverage ratio, which measures how much debt a company uses to finance its assets, has shown some fluctuation over the period. The ratio decreased from 2.74 in 2019 to 3.24 in 2020 before gradually declining to 3.02 in 2023. This indicates that the company's reliance on debt financing relative to its equity has decreased slightly in recent years.
Overall, Leidos Holdings Inc's solvency ratios suggest a conservative approach to managing its debt levels, with a focus on maintaining a strong financial position and a healthy balance sheet.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 155.25 | 1,088.00 | 6.19 | 5.29 | 6.87 |
Leidos Holdings Inc's interest coverage ratio has displayed significant fluctuations in recent years. The interest coverage ratio indicates the company's ability to pay interest expenses on outstanding debt from its operating income.
In 2023, the interest coverage ratio improved significantly to 155.25, indicating a substantial increase in the company's ability to cover its interest obligations with operating income. This suggests a healthy financial position and lower financial risk compared to the previous year.
The drastic improvement in 2023 compared to 2022, where the interest coverage ratio was reported at 1,088.00, raises questions about the unusual spike in operating income or a reduction in interest expenses during that period. These abnormal fluctuations may need further investigation to understand the underlying reasons driving such movements.
In 2021, the interest coverage ratio was relatively low at 6.19, indicating a lower ability to cover interest expenses compared to the following years. However, the ratios from 2020 and 2019 were more stable, with values of 5.29 and 6.87, respectively, suggesting a moderate ability to meet interest obligations during those periods.
Overall, the trend in Leidos Holdings Inc's interest coverage ratio shows a mix of fluctuations, with 2023 standing out as a year of significant improvement. It is important for investors and analysts to delve deeper into the underlying factors contributing to these fluctuations to assess the company's financial health accurately.