Callaway Golf Company (MODG)

The solvency ratios of Topgolf Callaway Brands Corp demonstrate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been consistently increasing from 2019 to 2023, indicating that the company is relying more on debt to finance its assets. A higher debt-to-assets ratio suggests higher financial risk and a greater dependency on creditors for funding.

The debt-to-capital ratio has also shown an upward trend over the years, implying that a larger proportion of the company's capital structure is made up of debt. This may indicate a potential vulnerability to economic downturns or interest rate fluctuations.

The debt-to-equity ratio has fluctuated over the years but has generally been on an increasing trend. The ratio in 2023 indicates that the company's debt level is approximately 66% of its total equity, which suggests a moderate level of financial risk but also implies that creditors have a significant claim on the company's assets.

The financial leverage ratio, which measures the company's total assets relative to equity, has been relatively stable over the years. A higher financial leverage ratio indicates a higher level of financial risk as the company is relying more on debt to finance its operations.

In summary, the trend in the solvency ratios of Topgolf Callaway Brands Corp suggests a potential increase in financial risk and a greater reliance on debt financing to support the company's operations and growth. It is important for investors and stakeholders to monitor these ratios closely to assess the company's ability to manage its debt levels effectively and maintain financial stability.

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Coverage ratios

The interest coverage ratio for Topgolf Callaway Brands Corp has displayed variability over the past five years, ranging from a low of 1.13 in 2023 to a high of 3.45 in 2019. The declining trend in the interest coverage ratio indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. A lower interest coverage ratio may suggest that the company is taking on more debt relative to its operating earnings, potentially indicating increased financial risk. Further analysis of the company's financial health and overall debt levels would be needed to fully assess the impact of the fluctuations in the interest coverage ratio.