Leidos Holdings Inc (LDOS)
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 | 2.97 | 3.02 | 3.04 | 3.09 | 3.24 |
Based on the provided data, Leidos Holdings Inc has demonstrated excellent solvency ratios over the years in consideration. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have remained consistently at 0.00 from December 31, 2020, to December 31, 2024. This suggests that the company's level of debt in relation to its assets, capital, and equity is negligible or non-existent.
Moreover, the financial leverage ratio, which indicates the extent of a company's financial leverage, has shown a decreasing trend from 3.24 on December 31, 2020, to 2.97 on December 31, 2024. This decreasing trend suggests that the company has been reducing its reliance on debt financing relative to its equity over the years, which can be considered a positive sign of financial stability and solvency.
Overall, based on the solvency ratios provided, Leidos Holdings Inc appears to have a strong financial position with minimal debt levels and a declining trend in financial leverage, indicating a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 155.25 | 1,088.00 | 6.19 | 5.29 |
The interest coverage ratio for Leidos Holdings Inc has shown varying trends over the years. As of December 31, 2020, the interest coverage ratio was 5.29, indicating that the company generated operating income 5.29 times higher than its interest expenses. This suggests a moderate ability to meet its interest obligations.
By December 31, 2021, the interest coverage ratio improved to 6.19, which signifies a further strengthening of Leidos Holdings Inc's ability to cover its interest payments comfortably.
However, by the end of December 31, 2022, the interest coverage ratio spiked significantly to 1,088.00, which seems unusually high and might be influenced by exceptional circumstances like a one-time gain or a significant reduction in interest expenses.
In the subsequent years, the interest coverage ratio decreased but remained relatively high at 155.25 as of December 31, 2023, indicating the company's ongoing ability to comfortably meet its interest obligations.
The absence of a figure for December 31, 2024, makes it challenging to assess the current interest coverage ratio. Nonetheless, based on the previous trends, Leidos Holdings Inc has generally shown a strong ability to meet its interest payments, with the exception of the exceptionally high figure in December 31, 2022, which may require further investigation for better understanding.