Insight Enterprises Inc (NSIT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 3.62 | 3.12 | 3.11 | 3.21 | 3.60 |
Insight Enterprises Inc.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
The debt-to-assets ratio has been fluctuating over the past five years, with a low of 0.08 in 2021 and a high of 0.21 in 2019. This ratio indicates the proportion of the company's assets financed by debt, and the decreasing trend from 2019 to 2021 suggests a more conservative approach to debt financing.
The debt-to-capital ratio also exhibits variability, ranging from 0.19 in 2021 to 0.43 in 2019. This ratio reflects the proportion of capital contributed by debt, and a declining trend from 2019 to 2021 indicates a shift towards more equity financing.
The debt-to-equity ratio has seen fluctuations as well, with a low of 0.24 in 2021 and a high of 0.74 in 2019. This ratio demonstrates the company's reliance on debt versus equity, and the decreasing trend from 2019 to 2021 suggests a decrease in leverage and potential improvement in solvency.
The financial leverage ratio, which measures the company's debt relative to equity, also shows variability over the years. The ratio peaked at 3.62 in 2023, indicating higher financial risk compared to previous years.
In conclusion, Insight Enterprises Inc. has demonstrated fluctuations in its solvency ratios over the past five years, with varying levels of debt dependence and financial risk. The company's recent trend towards lower debt-to-equity and debt-to-assets ratios may indicate a more conservative approach to managing long-term obligations and financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 10.19 | 10.48 | 8.22 | 6.49 | 8.43 |
Insight Enterprises Inc.'s interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has consistently been above 1, with higher ratios suggesting a lower financial risk associated with servicing debt. In particular, there was a notable increase in interest coverage from 2020 to 2021, which could indicate improved profitability or better management of interest expenses. However, it is essential to continue monitoring this ratio to ensure the company's financial health and ability to meet its debt obligations in the long term.