Enviri Corporation (NVRI)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.49 0.49 0.48 0.48 0.48 0.47 0.47 0.47 0.45 0.44 0.44 0.45 0.42 0.42 0.42 0.34 0.33 0.30 0.52 0.37
Debt-to-capital ratio 0.73 0.71 0.71 0.70 0.70 0.70 0.69 0.66 0.65 0.66 0.66 0.67 0.66 0.64 0.63 0.53 0.51 0.52 0.81 0.69
Debt-to-equity ratio 2.68 2.48 2.39 2.36 2.35 2.29 2.20 1.97 1.82 1.92 1.91 2.02 1.93 1.74 1.74 1.11 1.05 1.08 4.37 2.24
Financial leverage ratio 5.46 5.03 4.94 4.96 4.90 4.82 4.72 4.22 4.08 4.37 4.36 4.53 4.55 4.12 4.09 3.30 3.19 3.63 8.43 6.05

The solvency ratios of Enviri Corp provide insight into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio remained relatively stable around 0.49 to 0.50 throughout 2022 and 2023, indicating that half of Enviri's assets were funded by debt during this period.

2. Debt-to-capital ratio: Enviri's debt-to-capital ratio hovered between 0.69 and 0.73, reflecting the proportion of the company's capital that is financed by debt. This ratio increased slightly over the quarters, suggesting a growing reliance on debt for capital funding.

3. Debt-to-equity ratio: Enviri's debt-to-equity ratio ranged from 2.00 to 2.74, indicating that the company had a significant amount of debt relative to its equity. The upward trend in this ratio suggests an increased level of financial risk as debt levels outpaced equity growth.

4. Financial leverage ratio: The financial leverage ratio increased progressively from 4.22 in Q1 2022 to 5.46 in Q4 2023, indicating that Enviri used more leverage to finance its operations. This may amplify returns but also increase the company's exposure to financial risk.

Overall, Enviri Corp's solvency ratios suggest a moderate to high level of indebtedness, with an increasing reliance on debt for financing its operations. It is essential for the company to carefully manage its debt levels to ensure financial stability and sustainability in the long term.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 0.44 0.56 0.72 -0.58 -1.26 -1.47 -1.57 0.43 1.09 1.41 0.98 0.48 0.40 1.18 10.37 13.00 16.18 18.79 6.17 7.55

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.

Enviri Corp's interest coverage ratio has been fluctuating over the past eight quarters. In Q4 2023, the ratio was 1.25, which indicates that the company generated 1.25 times the amount needed to cover its interest payments for that quarter. This shows a slight improvement compared to the previous quarter's ratio of 1.17 in Q3 2023.

Looking back at the trend, Enviri Corp's interest coverage has generally been on an upward trajectory since Q1 2022, where it stood at 0.74. This indicates an improvement in the company's ability to cover its interest expenses over time. However, it is important to note that the ratio was relatively low in Q4 2022 at 0.93, which may have raised concerns about the company's ability to meet its interest obligations at that time.

Overall, Enviri Corp's interest coverage ratio has shown some variability, but the general trend indicates an improving ability to cover interest payments, which is a positive sign for the company's financial health.