NV5 Global Inc (NVEE)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.58 | 1.57 | 1.54 | 1.55 | 1.60 | 1.59 | 1.58 | 1.51 | 1.35 | 1.41 | 1.43 | 1.50 | 1.54 | 1.59 | 1.59 | 1.64 | 2.24 | 2.30 | 2.41 | 2.45 |
Based on the provided data for NV5 Global Inc, the solvency ratios indicate a strong financial position with respect to its debt management and capital structure.
1. Debt-to-assets ratio: The company consistently maintains a debt-to-assets ratio of 0.00 across all reporting periods from March 31, 2020, to December 31, 2024. This indicates that NV5 Global Inc has no debt in relation to its total assets, reflecting a low-risk profile in terms of creditors' claims on the company's assets.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio remains stable at 0.00 throughout the analyzed periods. This metric reinforces the company's ability to finance its operations without relying heavily on debt capital, thereby illustrating a conservative approach to capital structure management.
3. Debt-to-equity ratio: The debt-to-equity ratio also consistently records 0.00 over the same reporting periods. This signifies that NV5 Global Inc's financial leverage through debt is virtually non-existent, portraying a favorable balance between debt and equity financing and a minimal financial risk exposure.
4. Financial leverage ratio: The financial leverage ratio shows a declining trend from 2.45 on March 31, 2020, to 1.58 on December 31, 2024. This reduction indicates a decreasing reliance on debt financing over time and a strengthening equity position, which contributes to the overall improvement in the company's financial stability and risk management capabilities.
In conclusion, NV5 Global Inc demonstrates a prudent financial management strategy with a focus on maintaining a debt-free balance sheet, minimal financial leverage, and a well-structured capital base. This consistent performance in solvency ratios affirms the company's ability to meet its financial obligations and underscores its solid financial health and sustainability in the long run.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.73 | 3.13 | 2.92 | 3.65 | 4.72 | 5.65 | 8.35 | 13.99 | 17.38 | 20.30 | 18.15 | 14.76 | 10.95 | 6.57 | 4.77 | 3.23 | 2.91 | 3.16 | 3.58 | 5.81 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. Looking at the trend in NV5 Global Inc's interest coverage ratio over the specified timeframe:
- The interest coverage ratio has shown a fluctuating pattern, starting at 5.81 in March 2020 and decreasing to a low of 2.73 by December 2024.
- The ratio deteriorated from 5.81 in March 2020 to 2.91 in December 2020, indicating potentially increased financial risk due to lower earnings in relation to interest expenses during this period.
- However, there was a notable improvement in interest coverage from September 2021 onwards, with the ratio increasing steadily to reach a value of 2.73 by December 2024.
- The company's interest coverage ratio peaked at 20.30 in September 2022, indicating a significant improvement in its ability to cover interest expenses with its earnings.
Overall, while NV5 Global Inc experienced fluctuations in its interest coverage ratio over the analyzed period, there was a positive trend of improvement in the company's ability to meet its interest obligations, with the ratio showing an upward trajectory from 2021 onwards. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and debt repayment capacity.