MYR Group Inc (MYRG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.62 | 2.42 | 2.50 | 2.16 | 2.32 |
Based on the provided data, MYR Group Inc shows consistently low solvency ratios across various measures. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 for the years from 2020 to 2024. This indicates that the company carries minimal debt relative to its total assets, capital, and equity, suggesting a low level of financial risk.
However, the Financial leverage ratio shows a slight increase from 2.32 in 2020 to 2.62 in 2024. This ratio measures the proportion of a company's assets that are financed through debt, indicating an increase in leverage over the years.
Overall, MYR Group Inc's solvency ratios demonstrate a conservative approach to debt management, with a minimal reliance on external financing to support its operations. The slight increase in the Financial leverage ratio suggests a gradual shift towards slightly higher financial leverage, but the company's financial position remains stable and financially healthy.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.13 | 26.31 | 31.58 | 64.18 | 18.35 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. MYR Group Inc's interest coverage has exhibited fluctuations over the years. In December 2020, the interest coverage ratio was 18.35, indicating that the company was generating sufficient operating income to cover its interest expenses nearly 18 times over. The ratio significantly improved to 64.18 by December 2021, suggesting a substantial increase in the company's ability to cover interest payments. However, the ratio declined to 31.58 by December 2022, indicating a decrease in this capability. In the subsequent years, the interest coverage ratio continued to decrease, reaching 26.31 by December 2023 and 8.13 by December 2024. This downward trend may raise concerns about the company's ability to comfortably meet its interest obligations from its operating income. Further analysis of the company's financial health and cash flow management may be warranted to address these fluctuations in the interest coverage ratio.