Dorian LPG Ltd (LPG)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.30 | 0.35 | 0.37 | 0.34 | 0.35 |
| Debt-to-capital ratio | 0.35 | 0.41 | 0.39 | 0.36 | 0.37 |
| Debt-to-equity ratio | 0.54 | 0.69 | 0.64 | 0.57 | 0.60 |
| Financial leverage ratio | 1.80 | 1.96 | 1.75 | 1.67 | 1.71 |
Dorian LPG Ltd's solvency ratios indicate the company's ability to meet its financial obligations and manage its debt levels effectively.
The debt-to-assets ratio has shown a decreasing trend over the past five years, which is a positive indicator as it implies that the company has been able to reduce its reliance on debt to finance its assets. The ratio decreased from 0.35 in 2023 to 0.30 in 2024, reflecting improved asset coverage by a lower level of debt.
Similarly, the debt-to-capital ratio has been decreasing gradually, moving from 0.41 in 2023 to 0.35 in 2024. This reduction indicates that the company's capital structure is becoming less dependent on debt financing and more balanced with equity.
The debt-to-equity ratio also shows an improving trend, dropping from 0.69 in 2023 to 0.54 in 2024. A lower debt-to-equity ratio suggests that the company is relying less on borrowed funds and has a healthier mix of debt and equity in its capital structure.
The financial leverage ratio, which measures the company's overall debt level compared to its equity, has shown a decline over the years, indicating that the company's reliance on debt has been decreasing relative to its equity. The ratio decreased from 1.96 in 2023 to 1.80 in 2024, suggesting a lower financial risk for the company.
Overall, the declining trends in these solvency ratios demonstrate an improvement in Dorian LPG Ltd's ability to manage its debt levels and financial leverage effectively, potentially reducing financial risks and enhancing its long-term financial stability.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.65 | 6.05 | 4.53 | 5.36 | 4.98 |
The interest coverage ratio for Dorian LPG Ltd has shown an improving trend over the past five years, indicating the company's ability to meet its interest obligations with its earnings. The ratio increased from 4.98 in 2020 to 8.65 in 2024, reaching its highest level during this period. This suggests that the company's earnings are sufficient to cover its interest expenses more than eight times over in 2024, up from around five times in 2020.
The consistent improvement in the interest coverage ratio reflects positively on Dorian LPG Ltd's financial health and ability to handle its debt burden. This trend indicates a strengthening financial position, as the company's profitability has been increasing at a faster rate compared to its interest expenses. Overall, the increasing trend in the interest coverage ratio signals a reduced risk of default on interest payments and indicates a favorable position for the company in terms of its debt serviceability.