Mister Car Wash, Inc. Common Stock (MCW)
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 | 3.11 | 3.15 | 3.35 | 3.73 | 117.02 |
Based on the provided data for Mister Car Wash, Inc. Common Stock, we can see that the solvency ratios paint a picture of a company with very low debt levels and a strong financial position.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all show values of 0.00 consistently from December 31, 2020, to December 31, 2024. This indicates that the company has no debt relative to its assets, capital, or equity during this period. It suggests that Mister Car Wash, Inc. has financed its operations primarily through equity and retained earnings rather than debt.
Additionally, looking at the Financial leverage ratio, we see a significant decrease from 117.02 on December 31, 2020, to 3.11 on December 31, 2024. This downward trend indicates that the company has been reducing its reliance on debt in relation to its equity, which is a positive sign of improved financial stability and reduced financial risk over the years.
In conclusion, based on the analysis of solvency ratios, Mister Car Wash, Inc. appears to be in a strong solvency position, with minimal debt levels and a solid financial foundation that has been improving over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.29 | 2.37 | 2.03 | -1.11 | 2.21 |
The interest coverage ratio for Mister Car Wash, Inc. Common Stock provides insight into the company's ability to meet its interest obligations through its earnings.
As of December 31, 2020, the interest coverage ratio stood at 2.21, indicating that the company generated earnings 2.21 times greater than its interest expenses, which is generally considered healthy. However, the ratio sharply declined to -1.11 by December 31, 2021. A negative interest coverage ratio suggests that the company's earnings were insufficient to cover its interest expenses, raising concerns about its financial health and solvency.
Fortunately, Mister Car Wash, Inc. managed to improve its interest coverage ratio over the following years, reaching 2.03 by December 31, 2022, 2.37 by December 31, 2023, and 2.29 by December 31, 2024. These increasing ratios indicate a better ability to meet interest obligations with earnings, which is a positive trend for the company's financial stability and ability to service its debt.
Overall, the fluctuations in Mister Car Wash, Inc.'s interest coverage ratio highlight the importance of continuously monitoring a company's ability to cover its interest expenses, as it directly impacts the company's financial health and risk profile.