Rollins Inc (ROL)

Solvency ratios

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 Jun 30, 2020 Mar 31, 2020
Debt-to-assets ratio 0.14 0.16 0.18 0.19 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
Debt-to-capital ratio 0.23 0.25 0.29 0.30 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
Debt-to-equity ratio 0.30 0.34 0.41 0.44 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
Financial leverage ratio 2.12 2.14 2.24 2.28 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

Rollins Inc's solvency ratios reflect its ability to meet its long-term financial obligations and the extent to which the company relies on debt financing.

1. Debt-to-assets ratio:
- The debt-to-assets ratio decreased steadily from March 31, 2020, to December 31, 2021, indicating a lower proportion of debt relative to total assets during this period.
- However, there was a slight increase from March 31, 2022, to September 30, 2024, suggesting a higher debt level relative to assets in the later period.

2. Debt-to-capital ratio:
- The debt-to-capital ratio also exhibited a decreasing trend up to December 31, 2021, showing a declining reliance on debt to finance the company's operations during this time frame.
- Subsequently, the ratio increased from March 31, 2022, to December 31, 2024, indicating a higher proportion of debt relative to the company's total capital in the later period.

3. Debt-to-equity ratio:
- Similar to the other solvency ratios, the debt-to-equity ratio declined up to December 31, 2021, signaling a lower level of debt relative to equity during this period.
- However, from March 31, 2022, to December 31, 2024, the ratio increased progressively, indicating a higher reliance on debt financing compared to equity in the later period.

4. Financial leverage ratio:
- The financial leverage ratio fluctuated over the periods but generally remained above 1, indicating that Rollins Inc had more debt than equity in its capital structure.
- The trend shows an increase in financial leverage from March 31, 2023, to December 31, 2024, suggesting a higher level of financial risk and leverage in the company's operations during this period.

Overall, the analysis of Rollins Inc's solvency ratios indicates fluctuations in the company's debt levels and financial structure over the periods, highlighting the importance of monitoring these ratios to assess the company's financial health and risk profile.

Coverage ratios

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 Jun 30, 2020 Mar 31, 2020
Interest coverage 23.75 20.89 21.53 22.93 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

Rollins Inc's interest coverage ratio demonstrates the company's ability to meet its interest payment obligations. The trend of the interest coverage ratio indicates that the company's ability to cover its interest expenses has significantly improved over the past few quarters.

For example, as of March 31, 2020, the interest coverage ratio stood at 2.47, indicating that the company's operating income was able to cover its interest expenses nearly 2.5 times. Subsequently, the interest coverage ratio steadily increased, reaching a peak of 537.01 as of September 30, 2021, which signifies a strong ability to meet interest payments.

However, following this peak, the interest coverage ratio displayed a declining trend, dropping to 20.89 as of September 30, 2024. This decrease may indicate a potential slowdown in the company's ability to cover its interest obligations compared to previous periods.

Overall, the interest coverage ratio for Rollins Inc has shown significant fluctuations over the analyzed period, demonstrating both strengths and potential challenges in managing interest expenses. It is essential for the company to closely monitor this ratio to ensure financial stability and sustainability.