Enviri Corporation (NVRI)

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Enviri Corp over the past five years, we can observe the following trends:

1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. Enviri Corp's debt-to-assets ratio has been gradually increasing from 0.33 in 2019 to 0.50 in 2023. This suggests that the company's reliance on debt to fund its assets has been growing over the years.

2. Debt-to-capital ratio: The debt-to-capital ratio reflects the extent of a company's capital structure that is attributed to debt. Enviri Corp's debt-to-capital ratio has been fluctuating slightly but generally increasing over the years, reaching 0.73 in 2023. This indicates that a larger portion of the company's capital is derived from debt financing.

3. Debt-to-equity ratio: The debt-to-equity ratio measures the relationship between a company's debt and equity financing. Enviri Corp's debt-to-equity ratio has exhibited an upward trend, increasing from 1.05 in 2019 to 2.74 in 2023. This signals a higher level of financial leverage and a greater reliance on debt funding relative to equity.

4. Financial leverage ratio: The financial leverage ratio provides insight into the overall leverage of a company. Enviri Corp's financial leverage ratio has been rising steadily over the years, indicating an increasing level of financial risk. The ratio reached 5.46 in 2023, reflecting a higher degree of leverage compared to previous years.

In summary, Enviri Corp's solvency ratios illustrate a trend of growing reliance on debt financing and increasing financial leverage over the past five years. These trends suggest that the company's ability to meet its long-term financial obligations may be increasingly reliant on debt, potentially exposing it to higher financial risk. Further analysis and monitoring of these solvency ratios are recommended to assess the company's financial stability and risk management strategies.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.

Enviri Corp's interest coverage has fluctuated over the past five years, ranging from a low of 0.56 in 2020 to a high of 2.95 in 2019. The ratio improved to 1.25 in 2023, indicating that the company earned 1.25 times the amount of interest expenses in that year.

While the ratio has shown some variability, the general trend seems to be improving, with 2023 showing an increase from the previous year. However, it is important to continue monitoring the interest coverage ratio to ensure that Enviri Corp remains capable of meeting its interest obligations in the future.