Republic Services Inc (RSG)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.98 | 3.00 | 2.78 | 2.76 | 2.79 |
Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at Republic Services, Inc.'s solvency ratios over the past five years, we observe a consistent level of leverage and debt utilization.
The debt-to-assets ratio has remained relatively stable around 0.38 to 0.41, indicating that approximately 38% to 41% of the company's assets have been financed by debt over the years. This suggests a prudent level of debt management.
The debt-to-capital ratio has also shown consistency, ranging from 0.51 to 0.55. This ratio demonstrates the proportion of total capital that is represented by debt, with the company using debt to finance around 51% to 55% of its capital structure.
The debt-to-equity ratio has displayed a slight increasing trend, from 1.05 in 2019 to 1.22 in 2023. This indicates that for every dollar of equity, the company has $1.22 of debt in 2023. While the increase in this ratio may suggest a higher reliance on debt financing, the overall level remains within acceptable limits.
The financial leverage ratio has exhibited stability around 2.76 to 3.00, reflecting the multiple at which the company's assets exceed its equity capital. A higher financial leverage ratio implies a higher level of financial risk, but Republic Services, Inc. has maintained a moderate level of leverage over the years.
In summary, Republic Services, Inc. appears to have managed its solvency well, with consistent levels of debt usage and leverage. The company's solvency ratios indicate a balanced approach to financing its operations and investments, which contributes to its overall financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 5.31 | 5.63 | 6.00 | 4.21 | 4.30 |
The interest coverage ratio for Republic Services, Inc. has been relatively stable over the past five years, ranging from 4.34 to 6.10. This ratio indicates the company's ability to meet its interest obligations with its operating income.
A higher interest coverage ratio, such as the ratios seen in 2021 and 2022, suggests that Republic Services, Inc. has more than enough earnings to cover its interest expenses. This indicates a stronger ability to manage debt and implies lower financial risk.
However, the slight decrease in the interest coverage ratio in 2023 compared to the previous two years may warrant further investigation. Although the ratio of 5.42 still indicates that Republic Services, Inc. is comfortably covering its interest payments, a decreasing trend in this ratio could suggest that the company's earnings are not increasing at the same rate as its interest expenses.
Overall, monitoring Republic Services, Inc.'s interest coverage ratio over time can provide valuable insights into the company's financial health and its ability to service its debt obligations using its operating income.