Science Applications International Corporation Common Stock (SAIC)

The solvency ratios of Science Applications International Corporation Common Stock indicate the company's ability to meet its long-term debt obligations and maintain financial stability over time.

1. Debt-to-assets ratio: This ratio shows the proportion of the company's total assets financed by external debt. The trend indicates a slight decrease from 0.43 in January 2021 to 0.36 in January 2025, reflecting improved asset coverage by reducing reliance on debt financing.

2. Debt-to-capital ratio: This ratio demonstrates the percentage of the company's capital structure funded by debt. The trend shows a decline from 0.61 in January 2021 to 0.55 in January 2025, suggesting a decrease in the reliance on debt to finance operations and investments.

3. Debt-to-equity ratio: This ratio reveals the extent of the company's leverage and financial risk by comparing its debt to shareholders' equity. The trend displays a decrease from 1.59 in January 2021 to 1.21 in January 2025, indicating a lower level of debt relative to equity, which is a positive sign for investors and creditors.

4. Financial leverage ratio: This ratio provides insight into the company's overall financial risk by comparing its total assets to equity. The trend showcases a decrease from 3.71 in January 2021 to 3.33 in January 2025, suggesting a reduction in financial leverage and a stronger equity position relative to total assets.

In summary, the solvency ratios of Science Applications International Corporation Common Stock display a positive trend over the analyzed period, highlighting improved financial health, reduced reliance on debt, and enhanced ability to meet long-term obligations.

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Coverage ratios

The interest coverage ratio of Science Applications International Corporation Common Stock has shown a fluctuating trend over the years based on the provided data. As of January 29, 2021, the interest coverage ratio was 3.20, indicating that the company's operating income was sufficient to cover its interest expenses by 3.20 times. Over the following years, the ratio improved, reaching 4.39 on January 28, 2022, 4.10 on February 3, 2023, and 4.47 on January 31, 2025.

However, on February 2, 2024, there was a significant spike in the interest coverage ratio to 105.86, which suggests a substantial increase in the company's operating income relative to its interest expenses. This exceptional ratio could be attributed to various factors such as a one-time significant increase in earnings or a reduction in interest expenses.

Overall, the company's interest coverage ratio demonstrates a relatively stable ability to meet its interest obligations over the years, with occasional spikes indicating potential periods of strong financial performance or favorable cost structures. Investors and stakeholders may view this as a positive sign of the company's financial health and ability to manage its debt effectively.