Rollins Inc (ROL)

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	0.19	0.23	0.13	0.03	0.02	0.05	0.10	0.13	0.07	0.03	0.04	0.05	0.10	0.09	0.13	0.17	0.16	0.18	0.19	0.00
Debt-to-capital ratio	0.30	0.35	0.20	0.05	0.03	0.08	0.16	0.20	0.11	0.04	0.06	0.09	0.16	0.14	0.22	0.28	0.25	0.28	0.31	0.00
Debt-to-equity ratio	0.42	0.54	0.25	0.05	0.03	0.09	0.19	0.25	0.12	0.04	0.07	0.10	0.19	0.17	0.28	0.38	0.33	0.39	0.45	0.00
Financial leverage ratio	2.25	2.39	1.94	1.66	1.67	1.72	1.84	1.87	1.82	1.73	1.83	1.90	1.91	1.94	2.13	2.21	2.09	2.19	2.30	1.77

Rollins, Inc.'s solvency ratios provide insight into the company's ability to meet its long-term debt obligations. Looking at the trend in the debt-to-assets ratio, it indicates the portion of the company's assets financed by debt. The ratio has been fluctuating, with a notable increase in Q3 2023 compared to the previous quarters. The Q4 2023 ratio of 0.19 suggests that 19% of Rollins' assets are financed by debt.

The debt-to-capital and debt-to-equity ratios also show the company's dependency on debt for its capital structure. The Q4 2023 debt-to-capital ratio of 0.30 and debt-to-equity ratio of 0.42 indicate that debt accounts for 30% and 42% of the company's capital and equity, respectively. Both ratios have shown some volatility over the quarters, with Q3 2023 showing higher leverage than the previous quarters.

Lastly, the financial leverage ratio measures the proportion of the company's assets that are financed by debt compared to equity. The increasing trend in this ratio from Q1 2022 to Q3 2023 indicates that Rollins has been relying more on debt to finance its operations. The Q4 2023 ratio of 2.25 means that the company's assets are leveraged 2.25 times by debt.

Overall, the solvency ratios for Rollins, Inc. suggest that the company has been gradually increasing its leverage over the quarters, potentially indicating a higher risk if economic conditions or operational performance were to deteriorate. Further monitoring of these ratios is recommended to assess the company's long-term financial stability.

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	30.61	50.63	82.66	202.07	187.03	168.87	208.81	251.57	243.55	537.01	342.20	198.91	95.59	42.44	2.54	2.47	2.73	0.20	7.15	14.00

Interest coverage measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations. Looking at the trend for Rollins, Inc. over the past eight quarters, we can observe a consistent increase in interest coverage ratio, indicating improving financial health and the company's ability to comfortably cover its interest expenses with its operating income. The ratio has been steadily rising from 30.88 in Q4 2022 to 559.93 in Q1 2022, reaching very high levels in the latest quarters. This trend suggests that Rollins, Inc. has been efficiently managing its debt and generating sufficient earnings to comfortably cover its interest payments, reflecting strong financial stability and efficiency in its operations.