Liquidity Services Inc (LQDT)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 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 | 1.90 | 1.79 | 1.86 | 1.89 | 1.76 |
Liquidity Services Inc has consistently maintained a debt-free capital structure with a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all at 0.00 for the past five years. This indicates that the company has not utilized debt to finance its operations or investments during this period.
In terms of financial leverage, the financial leverage ratio has ranged between 1.76 and 1.90 over the same period. A financial leverage ratio above 1 implies some level of financial leverage, where a ratio of 1.90 in the most recent period suggests that the company has slightly increased its reliance on debt compared to prior years. However, it is important to note that the financial leverage ratio is still relatively low, indicating that the company's operations are primarily funded by equity rather than debt.
Overall, Liquidity Services Inc's solvency ratios point towards a strong financial position with minimal debt exposure and a conservative approach to capital structure.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 2,373.18 | 2,257.38 | 1,234.91 | -169.43 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest payment obligations. A higher interest coverage ratio suggests that the company is more capable of servicing its debt.
In the case of Liquidity Services Inc, the interest coverage ratio has shown significant improvement over the past five years. In particular, from a negative ratio in 2020, the company has steadily improved its interest coverage to 1,234.91 in 2021, 2,257.38 in 2023, and 2,373.18 in 2024. This trend indicates a positive development in the company's ability to cover its interest expenses with its operating income.
Overall, the improving trend in Liquidity Services Inc's interest coverage ratio suggests that the company has been able to generate sufficient earnings to comfortably meet its interest payment obligations. This is a positive indicator of the company's financial health and ability to service its debt. However, it is important for the company to continue monitoring and maintaining this ratio to ensure ongoing financial stability and sustainability.