Callaway Golf Company (MODG)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.19 0.16 0.16 0.17 0.17 0.17 0.17 0.17 0.14 0.13 0.13 0.13 0.13 0.14 0.15 0.17 0.33 0.33 0.34 0.21
Debt-to-capital ratio 0.38 0.27 0.27 0.28 0.28 0.28 0.28 0.29 0.24 0.22 0.22 0.22 0.22 0.22 0.22 0.25 0.49 0.49 0.50 0.37
Debt-to-equity ratio 0.61 0.37 0.37 0.39 0.39 0.39 0.39 0.40 0.31 0.28 0.28 0.29 0.28 0.28 0.28 0.33 0.96 0.95 1.01 0.60
Financial leverage ratio 3.17 2.33 2.31 2.34 2.35 2.27 2.28 2.35 2.28 2.16 2.15 2.18 2.10 1.99 1.94 1.97 2.93 2.86 2.98 2.81

The solvency ratios of Callaway Golf Company have shown a generally positive trend over the analyzed period.

1. Debt-to-assets ratio has decreased from 0.21 in March 2020 to 0.19 in December 2024, indicating that the company's level of debt relative to its total assets has been decreasing.

2. Debt-to-capital ratio has fluctuated but with an overall decrease from 0.37 in March 2020 to 0.38 in December 2024, suggesting that the proportion of debt in the company's capital structure has remained relatively stable.

3. Debt-to-equity ratio has decreased from 0.60 in March 2020 to 0.61 in December 2024, showing a positive trend in the company's ability to cover its debts with equity.

4. Financial leverage ratio has also fluctuated but remained within a reasonable range, indicating that the company has effectively managed its financial leverage over the years.

Overall, the solvency ratios of Callaway Golf Company show that the company has maintained a healthy balance between debt and equity, which is essential for its long-term financial stability.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage -5.42 0.78 1.00 1.12 1.17 1.22 1.31 1.57 1.99 1.87 2.01 1.78 4.04 5.55 6.66 3.81 -1.72 -1.61 -2.45 3.00

The interest coverage ratio measures a company's ability to cover its interest expenses on outstanding debt using its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.

Based on the data provided for Callaway Golf Company, the interest coverage ratio fluctuated over the analyzed period, ranging from -5.42 to 6.66. Negative values indicate that the company's operating income was insufficient to cover its interest expenses during those periods.

The interest coverage ratio significantly improved in the later part of the data series, showing values above 1.00, which is generally considered a minimum acceptable level by investors and creditors. However, it is important to note that the ratio experienced a decline towards the end of the period, dropping to 0.78 by September 30, 2024.

Overall, the trend suggests that while Callaway Golf Company has made progress in managing its interest expenses and generating sufficient operating income to cover its interest payments, there may be some concerns about the company's ability to consistently meet its interest obligations in the future based on the recent decline in the interest coverage ratio. Further analysis of the company's financial performance and debt management practices would be necessary to assess its financial health and stability.