Match Group Inc (MTCH)
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 | 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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.85 | 0.90 | 0.88 | 0.91 | 0.92 | 0.98 | 0.91 | 0.76 | 0.76 | 0.79 | 0.87 | 1.20 | 1.26 | 1.32 | 1.51 | 0.43 | 0.35 | 0.37 | 0.38 | 0.33 |
| Debt-to-capital ratio | 1.01 | 1.08 | 1.05 | 1.10 | 1.10 | 1.22 | 1.13 | 1.03 | 1.06 | 1.02 | 1.04 | 1.46 | 1.58 | 1.69 | 1.94 | 0.60 | 0.50 | 0.52 | 0.51 | 0.46 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1.50 | 0.99 | 1.07 | 1.05 | 0.84 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 3.48 | 2.86 | 2.87 | 2.78 | 2.58 |
The solvency ratios of Match Group Inc. provide insights into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has shown a mixed trend over the past eight quarters, ranging from 0.85 to 0.99. This ratio indicates that between 85% to 99% of Match Group's assets have been financed by debt. A decreasing trend in this ratio reflects a lower reliance on debt to finance assets, which can be considered a positive sign for solvency.
The debt-to-capital ratio has fluctuated between 1.01 and 1.22 during the same period. This ratio signifies the proportion of the company's capital structure that is financed by debt. A ratio above 1 indicates that debt forms a larger portion of the capital structure than equity. The downward trend in this ratio would suggest that Match Group has been reducing its dependence on debt for financing its operations.
The absence of data for the debt-to-equity ratio and financial leverage ratio limits a comprehensive analysis of Match Group's solvency from an equity and overall leverage perspective. These ratios are valuable in providing a more holistic view of the company's financial stability and risk management.
In conclusion, observing the trend of decreasing debt-to-assets and debt-to-capital ratios suggests that Match Group has been managing its debt levels and improving its solvency position over the past quarters. However, a more detailed analysis incorporating all solvency ratios would provide a more thorough assessment of the company's financial health.
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 | 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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.73 | 4.84 | 4.74 | 3.37 | 3.54 | 4.51 | 4.75 | 6.52 | 6.53 | 6.51 | 6.34 | 6.11 | 2.92 | 3.19 | 2.73 | 2.52 | 5.01 | 4.51 | 4.87 | 6.27 |
Over the past eight quarters, Match Group Inc.'s interest coverage ratio has exhibited some fluctuations but generally remained at healthy levels, indicating the company's ability to meet its interest payment obligations from its earnings. The interest coverage ratio peaked at 6.52 in Q1 2022, indicating that the company generated more than six times the earnings needed to cover its interest expenses during that period.
Although there was a slight decline in Q1 2023 with a ratio of 3.37, overall, Match Group Inc. has maintained an interest coverage ratio above 3, which is considered the minimum acceptable level for most investors. This suggests that the company has a comfortable buffer to handle its interest payments even if its earnings were to decrease.
The trend in recent quarters shows some volatility, with the ratio fluctuating between 3.37 and 5.73. Investors may want to monitor this ratio closely to ensure that Match Group Inc. continues to generate sufficient earnings to cover its interest expenses and maintain financial stability.