Science Applications International Corporation Common Stock (SAIC)
Solvency ratios
| Jan 31, 2025 | Nov 1, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.37 | 0.38 | 0.38 | 0.38 | 0.39 | 0.39 | 0.39 | 0.42 | 0.42 | 0.44 | 0.41 | 0.41 | 0.41 | 0.42 | 0.41 | 0.43 | 0.42 | 0.45 | 0.47 |
| Debt-to-capital ratio | 0.55 | 0.55 | 0.55 | 0.53 | 0.53 | 0.55 | 0.55 | 0.58 | 0.58 | 0.58 | 0.60 | 0.59 | 0.59 | 0.60 | 0.60 | 0.60 | 0.61 | 0.62 | 0.65 | 0.67 |
| Debt-to-equity ratio | 1.21 | 1.20 | 1.21 | 1.13 | 1.13 | 1.20 | 1.20 | 1.38 | 1.38 | 1.40 | 1.50 | 1.43 | 1.46 | 1.49 | 1.52 | 1.52 | 1.59 | 1.63 | 1.85 | 2.01 |
| Financial leverage ratio | 3.33 | 3.27 | 3.23 | 2.98 | 2.98 | 3.10 | 3.08 | 3.52 | 3.27 | 3.34 | 3.44 | 3.49 | 3.55 | 3.62 | 3.65 | 3.69 | 3.71 | 3.92 | 4.14 | 4.31 |
The solvency ratios of Science Applications International Corporation Common Stock indicate its ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets funded by debt. The trend is declining from 0.47 in May 2020 to 0.36 in January 2025. A lower ratio implies less reliance on debt for financing assets, suggesting improved solvency.
2. Debt-to-capital ratio: This ratio indicates the proportion of a company's capital structure financed by debt. The ratio has decreased from 0.67 in May 2020 to 0.55 in January 2025. The declining trend shows a reduced dependency on debt financing, which is positive for solvency.
3. Debt-to-equity ratio: This ratio reflects the extent to which the company's operations are financed through debt versus equity. The ratio has decreased from 2.01 in May 2020 to 1.21 in January 2025. A decreasing trend indicates a lower reliance on debt and a stronger equity position, enhancing the company's solvency.
4. Financial leverage ratio: This ratio measures the company's level of debt relative to its equity and indicates the company's financial risk. The ratio has decreased from 4.31 in May 2020 to 3.33 in January 2025. A declining trend signifies a lower level of financial risk and improved solvency.
Overall, the decreasing trends in these solvency ratios reflect Science Applications International Corporation's improving financial health and ability to meet its long-term debt obligations.
Coverage ratios
| Jan 31, 2025 | Nov 1, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.41 | 71.00 | 242.00 | — | — | 6.50 | 6.22 | 4.22 | 4.10 | 4.04 | 4.05 | 4.30 | 4.39 | 4.58 | 4.29 | 3.79 | 3.20 | 3.23 | 3.39 | 3.70 |
The interest coverage ratio for Science Applications International Corporation Common Stock has shown varying trends over the period from May 1, 2020, to January 31, 2025. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT).
The interest coverage ratio started at 3.70 on May 1, 2020, indicating that the company's earnings were 3.70 times its interest expense. This ratio decreased slightly to 3.39 by July 31, 2020, and further decreased to 3.23 by October 30, 2020. From January 29, 2021, the interest coverage ratio remained relatively stable within the range of 3.20 to 4.58 until October 28, 2022.
There was a notable increase in the interest coverage ratio to 6.22 on August 4, 2023, and a further increase to 6.50 by November 3, 2023, indicating a significant improvement in the company's ability to cover its interest expenses.
However, there was a drastic spike in the interest coverage ratio to 242.00 on August 2, 2024, and then a sharp drop to 71.00 by November 1, 2024. Such extreme values may be due to irregularities in earnings or interest expenses during those periods.
By January 31, 2025, the interest coverage ratio returned to a more stable level of 4.41. It is important for investors and stakeholders to monitor the interest coverage ratio to assess the company's ability to manage its debt obligations and ensure financial stability.