Liquidity Services Inc (LQDT)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.68 | 1.79 | 1.82 | 1.87 | 1.74 | 1.86 | 1.95 | 2.08 | 2.09 | 1.89 | 2.05 | 2.03 | 1.78 | 1.76 | 1.80 | 1.68 | 1.59 | 1.61 | 1.57 | 1.55 |
Based on the provided data, Liquidity Services Inc has consistently maintained a low level of debt relative to its assets, capital, and equity as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being zero across the periods shown. This suggests that the company relies more on equity financing rather than debt to fund its operations and investments.
However, when examining the financial leverage ratio, which indicates the extent to which the company relies on debt to finance its assets, there is an increasing trend over the periods shown. The financial leverage ratio has been rising from 1.68 in Q1 2022 to 2.08 in Q2 2022, indicating that the company's financial leverage has been increasing.
While having a low level of debt is positive for solvency as it reduces the financial risk, a rapidly increasing financial leverage ratio could signal potential concerns regarding the company's ability to meet its debt obligations in the future, especially if the trend continues. It would be important for stakeholders to monitor Liquidity Services Inc's debt management practices and overall financial health closely to ensure long-term sustainability and solvency.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2,302.70 | 2,373.36 | 1,637.39 | 2,100.68 | 2,382.50 | 2,257.43 | 1,933.52 | 1,562.27 | 1,228.41 | 1,234.91 | 1,273.95 | 752.81 | 272.33 | -169.43 | -812.83 | -41.61 | -21.30 | -15.94 | -13.17 | -16.69 |
As the data for interest coverage for Liquidity Services Inc is not provided for any of the quarters, we are unable to conduct a comprehensive analysis of this financial ratio. Interest coverage ratio is a key metric that indicates a company's ability to meet its interest obligations with its earnings. Without this information, it is not possible to evaluate the company's financial health in terms of its capacity to cover interest expenses. Analysts recommend monitoring interest coverage over time to assess the company's financial strength and ability to meet debt obligations.