Mercury Systems Inc (MRCY)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.25 | 0.26 | 0.25 | 0.24 | 0.21 | 0.21 | 0.22 | 0.22 | 0.20 | 0.00 | 0.20 | 0.00 | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.29 | 0.30 | 0.29 | 0.27 | 0.25 | 0.25 | 0.25 | 0.25 | 0.23 | 0.00 | 0.23 | 0.00 | 0.12 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.40 | 0.42 | 0.41 | 0.37 | 0.33 | 0.33 | 0.33 | 0.33 | 0.29 | 0.00 | 0.30 | 0.00 | 0.13 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.62 | 1.61 | 1.62 | 1.56 | 1.53 | 1.53 | 1.52 | 1.53 | 1.50 | 1.51 | 1.50 | 1.33 | 1.32 | 1.31 | 1.36 | 1.17 | 1.16 | 1.31 | 1.15 | 1.14 |
Mercury Systems Inc's solvency ratios have shown consistency over the past quarters. The debt-to-assets ratio has ranged between 0.21 to 0.26, indicating that the company typically finances around 21% to 26% of its assets with debt. The debt-to-capital ratio has also been relatively stable, fluctuating between 0.25 to 0.30, implying that debt accounts for approximately 25% to 30% of the firm's capital structure.
Similarly, the debt-to-equity ratio has shown consistency, varying from 0.33 to 0.42, suggesting that debt represents around 33% to 42% of the company's equity. The financial leverage ratio has been relatively steady, ranging from 1.15 to 1.62, reflecting a moderate level of financial leverage.
Overall, Mercury Systems Inc's solvency ratios indicate a prudent approach to managing debt levels, with a consistent balance between debt and equity in its capital structure.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -4.41 | -4.59 | -3.37 | -1.91 | -0.93 | 0.45 | 1.02 | 2.09 | 4.17 | 5.28 | 12.16 | 29.40 | 64.15 | 53.93 | 85.37 | 95.14 | 94.37 | 36.52 | 16.06 | 10.66 |
Mercury Systems Inc's interest coverage ratio has fluctuated significantly over the past few quarters. The interest coverage ratio represents the company's ability to pay its interest expenses with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Looking at the data provided, we can see that the interest coverage ratio has been negative for multiple quarters, reaching a low of -4.59 in March 2024 and -4.41 in June 2024. This indicates a concerning situation where the company's operating income is not sufficient to cover its interest expenses.
However, there have been periods where the interest coverage ratio improves, such as in December 2021 when it was 12.16 and in September 2021 when it was 29.40. These higher ratios suggest that the company had a strong ability to cover its interest expenses during those periods.
Overall, the trend in Mercury Systems Inc's interest coverage ratio shows volatility and inconsistency. It is important for the company to closely monitor its financial performance and ensure it has enough operating income to comfortably cover its interest expenses in the long term.