N-Able Inc (NABL)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.31 | 0.32 |
| Debt-to-capital ratio | 0.32 | 0.34 | 0.35 |
| Debt-to-equity ratio | 0.47 | 0.52 | 0.54 |
| Financial leverage ratio | 1.63 | 1.68 | 1.71 |
The solvency ratios of N-Able Inc over the past three years indicate a favorable trend in the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of total assets funded by debt, has improved from 0.32 in 2021 to 0.29 in 2023, indicating a decreasing reliance on debt to finance assets.
Similarly, the debt-to-capital and debt-to-equity ratios show a decline from 0.35 and 0.54 in 2021 to 0.32 and 0.47 in 2023, respectively. These ratios suggest that the company has decreased its debt levels in relation to both total capital and equity, demonstrating a stronger financial position and lower financial risk.
The financial leverage ratio, which evaluates the extent to which the company uses debt to finance its operations, has also decreased from 1.71 in 2021 to 1.63 in 2023. This decline indicates that N-Able Inc has reduced its reliance on debt financing, leading to a more stable capital structure and improved solvency.
Overall, based on the solvency ratios analyzed, it appears that N-Able Inc has been effective in managing its debt levels and enhancing its financial stability over the past three years. This trend bodes well for the company's long-term financial health and ability to honor its financial commitments.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Interest coverage | 43.92 | 29.20 | 45.53 |
The interest coverage ratio for N-Able Inc has displayed fluctuations over the past three years. The significant increase in interest coverage from 29.20 in 2022 to 43.92 in 2023 indicates that the company's ability to cover its interest payments has improved. This suggests that N-Able Inc has generated significantly more earnings relative to its interest expenses, indicating a lower financial risk associated with debt servicing. However, it is worth noting that while the interest coverage ratio decreased slightly from 45.53 in 2021 to 29.20 in 2022, it still remained at a healthy level above 1, indicating that the company was able to meet its interest obligations comfortably. Overall, the upward trend in the interest coverage ratio bodes well for N-Able Inc's financial health and stability.