Nextracker Inc. Class A Common Stock (NXT)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | — | 0.00 | 0.00 |
| Financial leverage ratio | 1.96 | 2.62 | — | 2.03 | 1.93 |
The solvency ratios of Nextracker Inc. Class A Common Stock show a strong financial position with consistently low debt levels relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00% for the years ending March 31, 2021, 2022, 2024, and 2025. This indicates that the company's debt obligations are effectively non-existent compared to its total assets, capital, and equity, highlighting a low-risk profile in terms of solvency.
The Financial leverage ratio, which provides a broader view of the company's debt financing and its impact on the overall financial structure, shows prudent leverage levels. Despite some fluctuations, with a peak in 2024 at 2.62, the ratio has generally remained at manageable levels, ranging from 1.93 in 2021 to 1.96 in 2025. This suggests that Nextracker Inc. has maintained a conservative approach to debt management, avoiding excessive leverage that could potentially strain its solvency.
Overall, based on the solvency ratios provided, Nextracker Inc. Class A Common Stock appears to be in a healthy financial position with low debt levels and a balanced capital structure, indicating a strong ability to meet its financial obligations and sustain long-term operations.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 44.99 | 92.70 | 81.49 | 315.80 |
Nextracker Inc.'s Class A Common Stock interest coverage ratio has shown fluctuations over the past five years. The ratio decreased from a robust 315.80 in March 2021 to 81.49 in March 2022, indicating a decline in the company's ability to cover its interest expenses with operating income. Despite this decrease, the ratio improved slightly to 92.70 in March 2023, but then declined sharply to 44.99 in March 2024. This suggests potential challenges in meeting interest obligations relative to earnings.
Furthermore, the interest coverage ratio dropped to 0.00 in March 2025, signaling a significant concern as the company's operating income was insufficient to cover its interest payments during that period. This could raise red flags for investors and creditors regarding the company's financial health and ability to service its debt obligations. Overall, the trend in Nextracker Inc.'s interest coverage ratio reflects fluctuations and a recent concerning decline, warranting attention and further analysis.