NV5 Global Inc (NVEE)
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 | 0.32 | 0.37 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.42 | 0.48 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.72 | 0.94 |
| Financial leverage ratio | 1.51 | 1.35 | 1.54 | 2.24 | 2.51 |
The solvency ratios of NV5 Global Inc show a consistent trend of decreasing debt levels and improving financial leverage over the years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all decreased significantly from 2020 to 2023, reaching zero in the latest year. This indicates that the company has managed to reduce its reliance on debt financing and has a strong asset base to support its operations.
Furthermore, the financial leverage ratio has also shown a decreasing trend, reflecting a lower level of debt relative to equity. This suggests that the company has been able to finance its operations with a more balanced mix of debt and equity, resulting in a stronger financial position and reduced financial risk.
Overall, based on these solvency ratios, NV5 Global Inc appears to have a strong financial position with minimal debt exposure, which bodes well for its financial stability and ability to weather economic challenges in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.72 | 17.38 | 10.95 | 2.91 | 13.72 |
Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Looking at NV5 Global Inc's interest coverage ratio over the past five years, we observe fluctuations in the ratio. In 2023, the interest coverage ratio was 4.72, showing a decrease from the previous year. Although the ratio is above 1, indicating that the company's operating income can cover its interest expenses, the decrease from the prior year raises some concerns about the company's ability to comfortably meet its interest obligations.
In 2022, the interest coverage ratio significantly improved to 17.38, reflecting a robust ability to cover interest expenses. This exceptional ratio suggests that NV5 Global Inc had a substantial margin of safety in meeting its interest payments from its operating income.
In 2021, the interest coverage ratio was 10.95, which, although lower than the previous year, still indicates a healthy ability to cover interest expenses. The moderate decrease from 2020 could be a point of interest for further examination.
In 2020, the interest coverage ratio was 2.91, which indicates that the company's operating income could cover its interest expenses nearly three times over. While this ratio is above 1, it is relatively lower compared to the previous years, suggesting a potentially tighter financial position in that year.
In 2019, the interest coverage ratio was 13.72, demonstrating a strong ability to cover interest expenses. This high ratio suggests that NV5 Global Inc was well-positioned to meet its interest obligations comfortably.
Overall, NV5 Global Inc's interest coverage ratio has shown variability over the past five years, with some years indicating stronger ability to cover interest expenses than others. Analyzing the trend in interest coverage ratios is essential in understanding the company's financial health and its ability to service its debt obligations effectively.