QuinStreet Inc (QNST)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.77 | 1.77 | 1.83 | 1.83 | 1.70 | 1.62 | 1.49 | 1.44 | 1.47 | 1.45 | 1.40 | 1.43 | 1.47 | 1.44 | 1.43 | 1.47 | 1.52 | 1.53 | 1.49 | 1.53 |
The financial data for QuinStreet Inc. indicates a consistent absence of leverage-related liabilities over the analyzed period. Notably, the debt-to-assets ratio remains at zero throughout all reported dates, implying that the company has not utilized debt financing when measured against its total assets. Similarly, the debt-to-capital ratio is also reported as zero across the same time span, suggesting no reliance on debt relative to its capital structure.
Furthermore, the debt-to-equity ratio uniformly remains at zero, indicating that the company has not reported any debt in relation to shareholders' equity, which aligns with the previous ratios and confirms an absence of recorded liabilities or debt financing.
The only ratio presenting a deviation from zero is the financial leverage ratio. While relatively stable earlier, this ratio gradually increases over time, from approximately 1.47 in September 2021 to 1.83 as of September 2024, before slightly decreasing to 1.77 in the latest periods (March and June 2025). This ratio, being above 1, suggests a modest degree of financial leverage, which might reflect some form of operational or accounting leverage rather than debt-based leverage, given the zero debt ratios.
In conclusion, QuinStreet Inc. exhibits a consistent pattern of zero reported debt ratios throughout the observed period, indicating a highly conservative or debt-free financial position. The increasing financial leverage ratio over time may warrant further investigation into what constitutes this ratio in the absence of formal debt, but overall, the firm maintains a robust solvency profile characterized by the lack of leverage and debt obligations.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.08 | 1.43 | -16.36 | -30.74 | -43.70 | -49.07 | -47.79 | -37.57 | -25.71 | -19.34 | -15.00 | -12.64 | -4.09 | 2.18 | 6.44 | 12.22 | 10.81 | 10.19 | 9.18 | 12.48 |
The analysis of QuinStreet Inc's interest coverage ratio, as of September 30, 2020, reflects a solid financial position in terms of debt service capacity, with a ratio of 12.48. This indicates that the company's earnings before interest and taxes (EBIT) were more than twelve times its interest expenses, suggesting robust coverage and comfortable ability to meet interest obligations during that period.
Throughout the subsequent periods, the interest coverage ratio exhibited a general declining trend, signaling a deterioration in the company's ability to cover interest expenses from its earnings. Notably, by December 31, 2021, the ratio decreased to 6.44, still indicating satisfactory coverage but suggesting increased financial strain compared to earlier periods.
From March 31, 2022, onward, the ratio turned negative and remained so through most of 2022 and early 2023, including values of -4.09, -12.64, -15.00, -19.34, -25.71, -37.57, and -47.79. Negative ratios denote that EBIT was insufficient to cover interest expenses, implying that the company was either incurring losses before interest payments or had minimal earnings, which compromised its capacity to meet debt obligations solely through operating income.
This persistent negative trend persisted into 2024, with ratios reaching as low as -49.07 in March 2024, reflecting significant challenges in covering interest expenses from operating earnings. The trend indicated increasing financial distress during this period.
However, a noteworthy change is observed in the data for the first half of 2025, where the interest coverage ratio turns positive again, with values of 1.43 in March 2025 and improving to 15.08 by June 2025. This reversal indicates a substantial recovery in earnings, allowing the company to once more comfortably cover its interest obligations and suggesting a potential strengthening of financial performance.
Overall, the historical trend demonstrates a period of decline in interest coverage ratios, culminating in sustained negative coverage for approximately two years, before showing signs of recovery in 2025. This pattern indicates that QuinStreet Inc experienced significant financial headwinds, likely related to operational or market conditions, but appears to be reverting towards a more stable financial footing based on recent ratio improvements.