QuinStreet Inc (QNST)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 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 | 1.70 | 1.47 | 1.47 | 1.52 | 1.40 |
Based on the solvency ratios provided for QuinStreet Inc over the past five years, it is evident that the company has consistently maintained a debt-free capital structure, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at 0.00 for each of the five years. This signifies that QuinStreet Inc operates with a strong financial position with no reliance on debt to fund its operations or growth.
However, the financial leverage ratio, which measures the extent of a company's financial leverage, has shown fluctuations over the same period. The financial leverage ratio increased from 1.40 in 2020 to 1.70 in 2024, with some variation in between. This suggests that QuinStreet Inc has been utilizing more financial leverage in recent years, indicating a higher level of financial risk compared to previous years.
Overall, while QuinStreet Inc's lack of debt indicates a strong solvency position, investors should closely monitor the trend in the financial leverage ratio to assess the company's changing risk profile and its ability to manage its financial obligations in the future.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -43.70 | -26.04 | -4.36 | 23.63 | 27.85 |
The interest coverage ratio for QuinStreet Inc has exhibited significant fluctuations over the past five years. In 2024, the interest coverage ratio was -43.70, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses. This represents a very weak financial position, suggesting that the company may be at a high risk of defaulting on its debt obligations.
The negative interest coverage ratios in 2024 and 2023 raise serious concerns about the company's ability to meet its interest payments. The significant deterioration in the interest coverage ratio from 2020 to 2022 highlights a concerning trend of declining profitability relative to interest expenses.
It is evident that QuinStreet Inc faced financial challenges in recent years, with the company experiencing a sharp decline in its ability to cover interest expenses. Investors and creditors should closely monitor the company's financial performance and debt servicing capabilities to assess the risks associated with its financial health.