Enviri Corporation (NVRI)
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 | 6.44 | 5.46 | 4.90 | 4.08 | 4.55 |
Enviri Corporation's solvency ratios indicate a strong financial position with consistently low debt levels relative to assets, capital, and equity over the years 2020 to 2024. The debt-to-assets, debt-to-capital, and debt-to-equity ratios remained at 0.00 throughout this period, showing that the company is not heavily reliant on debt to finance its operations and investments.
However, the financial leverage ratio, which measures the extent of debt financing in relation to equity, increased from 4.55 in 2020 to 6.44 in 2024. This suggests that the company's reliance on debt has been steadily rising, potentially increasing financial risk and interest expense obligations.
In summary, while Enviri Corporation has maintained a conservative debt structure with minimal debt in relation to assets, capital, and equity, the increasing financial leverage ratio signals a trend towards higher debt levels relative to equity over the years, which may warrant further monitoring to ensure sustainable financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.09 | 0.84 | -0.67 | 1.54 | 0.01 |
The interest coverage ratio of Enviri Corporation has shown significant fluctuations over the past five years based on the provided data. In December 2020, the interest coverage ratio was extremely low at 0.01, indicating that the company's operating income was barely sufficient to cover its interest expenses.
However, by December 2021, Enviri's interest coverage improved to 1.54, suggesting that the company's operating income was able to cover its interest payments more comfortably. This increase in the ratio indicates a positive trend in the company's ability to service its debt obligations.
In contrast, the interest coverage ratio deteriorated in December 2022 to -0.67, implying that the company's operating income was insufficient to cover its interest expenses, potentially raising concerns about its financial health and ability to meet debt obligations.
By December 2023, the interest coverage ratio rebounded to 0.84, although it remained below ideal levels. This improvement indicates some stabilization in the company's ability to cover its interest costs, but the ratio is still relatively low.
In December 2024, the interest coverage ratio decreased again to 0.09, signaling a decline in Enviri's ability to cover its interest expenses. This drop raises red flags regarding the company's capacity to service its debt and may indicate financial strain.
Overall, Enviri Corporation's interest coverage ratio has displayed inconsistency and volatility, with fluctuations indicating varying levels of ability to meet interest obligations. It is crucial for the company to closely monitor and manage its financial leverage to ensure sustainable operations and financial stability in the long run.