EchoStar Corporation (SATS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 3.02 | 2.87 | 1.77 | 1.80 | 2.00 |
EchoStar Corporation's solvency ratios indicate a strong financial position with consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across the years 2020 to 2024. This suggests that the company has minimal debt relative to its assets, capital, and equity, reflecting a low level of financial risk.
However, the financial leverage ratio shows some variability over the years, ranging from 1.77 to 3.02. This indicates that the company's reliance on debt to finance its operations has increased from 2022 onwards, which may raise concerns about its ability to cover its debt obligations in the future.
Overall, while EchoStar Corporation currently maintains a solid solvency position with negligible debt ratios, investors and stakeholders should monitor the trend in the financial leverage ratio to assess the company's changing debt levels and potential impact on its financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -1.16 | -20.42 | 59.73 | 2.34 | 0.81 |
The interest coverage ratio for EchoStar Corporation has shown significant fluctuations over the past few years. In 2020, the ratio was 0.81, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses. However, the ratio improved in 2021 to 2.34, signaling a better ability to meet its interest obligations.
The most notable increase in the interest coverage ratio occurred in 2022, reaching a substantial 59.73. This significant improvement suggests that EchoStar Corporation's earnings are significantly higher compared to its interest expenses, indicating a strong financial position.
However, there was a sharp decline in 2023, with the interest coverage ratio falling to -20.42. A negative ratio is a concerning signal, implying that the company's earnings were insufficient to cover its interest payments. Moreover, the negative interest coverage ratio continued in 2024 at -1.16, further highlighting financial challenges.
Overall, the fluctuating trend in EchoStar Corporation's interest coverage ratio signifies varying levels of financial health and the need for the company to manage its debt obligations effectively to ensure sustainable operations.