Mister Car Wash Inc (MCW)
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 | |
|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.31 | 0.31 | 0.32 | 0.33 | 0.33 | 0.34 | 0.35 | 0.36 |
| Debt-to-capital ratio | 0.50 | 0.50 | 0.51 | 0.52 | 0.53 | 0.54 | 0.54 | 0.56 |
| Debt-to-equity ratio | 0.98 | 1.00 | 1.04 | 1.08 | 1.12 | 1.15 | 1.20 | 1.28 |
| Financial leverage ratio | 3.15 | 3.20 | 3.27 | 3.28 | 3.35 | 3.39 | 3.43 | 3.57 |
Mister Car Wash Inc's solvency ratios have shown consistency in some areas, with the debt-to-assets ratio remaining stable at 0.32 over the last four quarters. This indicates that approximately 32% of the company's assets are financed by debt. The debt-to-capital ratio has also exhibited a similar trend, hovering between 0.50 and 0.53, indicating that debt accounts for roughly 50-53% of the company's capital structure.
However, the debt-to-equity ratio has shown a gradual increase from 1.00 in Q1 2023 to 1.14 in Q4 2022, signaling that the company's reliance on debt relative to equity has been growing. This could imply increased financial risk and a higher level of leverage.
Furthermore, the financial leverage ratio has fluctuated between 3.15 and 3.35, indicating that the company has been using debt to finance its operations and investments to a significant extent. A higher financial leverage ratio suggests a higher degree of financial risk and potential volatility in the company's earnings and cash flows.
Overall, while Mister Car Wash Inc's solvency ratios have shown stability in certain aspects, the increasing debt-to-equity ratio and the fluctuating financial leverage ratio suggest a potential need for careful monitoring of the company's financial leverage and debt management strategies to ensure sustainable growth and financial stability in the long run.
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 | |
|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.37 | 2.57 | 2.95 | 3.52 | 4.48 | 5.94 | 6.73 | -0.08 |
The interest coverage ratio of Mister Car Wash Inc has been showing a decreasing trend over the past five quarters, with values of 4.46 in Q4 2022, 3.49 in Q1 2023, 2.90 in Q2 2023, 2.55 in Q3 2023, and 2.37 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has been gradually weakening. A lower interest coverage ratio may suggest that the company is becoming less capable of meeting its interest payment obligations from its earnings. Mister Car Wash Inc should closely monitor this trend and take necessary actions to improve its interest coverage ratio in order to maintain financial stability and investor confidence.