NV5 Global Inc (NVEE)
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 | 1.58 | 1.51 | 1.35 | 1.54 | 2.24 |
Based on the provided data, NV5 Global Inc has consistently maintained a strong solvency position over the past five years.
The Debt-to-assets ratio, which indicates the proportion of the company's assets financed by debt, has been 0.00 each year, signaling that the company relies very little on debt to fund its assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also been 0.00 each year, demonstrating that NV5 Global Inc predominantly finances its operations through equity rather than debt.
The Financial leverage ratio, which measures how much of the company's operations are funded by debt, has shown a decreasing trend from 2.24 in 2020 to 1.58 in 2024. This suggests that the company has gradually reduced its reliance on debt financing over the years.
Overall, the solvency ratios indicate that NV5 Global Inc has a strong financial position with a minimal debt burden and a healthy capital structure. This should provide the company with financial stability and flexibility to support its growth and operational needs in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.53 | 4.72 | 17.38 | 10.95 | 2.91 |
The interest coverage ratio of NV5 Global Inc has shown fluctuations over the years. As of December 31, 2020, the interest coverage ratio was 2.91, indicating that the company's operating income was able to cover its interest expenses approximately 2.91 times.
By December 31, 2021, the interest coverage ratio improved significantly to 10.95, signaling that the company's ability to meet its interest obligations had strengthened. This positive trend continued into December 31, 2022, with the interest coverage ratio further increasing to 17.38, showcasing the company's robust financial position in terms of repaying its interest expenses.
However, by December 31, 2023, the interest coverage ratio decreased to 4.72, suggesting a potential decrease in the company's ability to cover its interest payments due to various factors such as changes in operational performance or increased interest costs.
Subsequently, as of December 31, 2024, the interest coverage ratio dropped further to 2.53, indicating a potential strain on the company's ability to meet its interest obligations with its operating income.
Overall, while NV5 Global Inc experienced fluctuations in its interest coverage ratio over the years, it is essential for the company to maintain a healthy ratio to ensure sustainable financial health and meet its debt obligations comfortably.