EchoStar Corporation (SATS)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.31 | 0.00 | 0.00 | 0.00 | 0.32 | 0.00 | 0.00 | 0.00 | 0.25 | 0.24 | 0.24 | 0.22 | 0.21 | 0.21 | 0.21 | 0.34 | 0.33 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.47 | 0.00 | 0.00 | 0.00 | 0.47 | 0.00 | 0.00 | 0.00 | 0.31 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 | 0.40 | 0.39 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.90 | 0.00 | 0.00 | 0.00 | 0.87 | 0.00 | 0.00 | 0.00 | 0.45 | 0.43 | 0.43 | 0.43 | 0.42 | 0.42 | 0.42 | 0.67 | 0.65 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.87 | 1.74 | 1.75 | 1.75 | 2.73 | 1.78 | 1.80 | 1.79 | 1.80 | 1.79 | 1.77 | 1.99 | 2.00 | 1.98 | 1.98 | 1.96 | 1.95 | 1.92 | 1.88 | 2.11 |
EchoStar Corporation's solvency ratios show the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.00 recently, indicating a low level of debt relative to its total assets. The debt-to-capital and debt-to-equity ratios also show minimal debt compared to the company's capital and equity, with values close to 0.00 in recent periods.
However, the financial leverage ratio has shown some fluctuations, with a recent peak of 1.99 in March 2021, suggesting an increase in financial leverage. Despite this, the ratio has trended downward since then, reaching 1.74 in September 2023, indicating a decrease in reliance on debt to fund operations.
Overall, EchoStar Corporation appears to have a conservative capital structure with a low level of debt relative to its assets, capital, and equity, which can provide stability and financial flexibility in the long run.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -7.25 | 2.75 | 3.15 | 3.11 | 3.32 | 2.95 | 3.09 | 2.75 | 2.27 | 1.83 | 1.36 | 1.06 | 0.76 | 0.51 | 0.43 | 0.24 | 0.29 | -0.04 | 0.20 | 0.91 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses. A higher interest coverage ratio indicates a better ability to meet interest obligations.
Based on the data provided for EchoStar Corporation, the interest coverage ratio fluctuated significantly over the periods analyzed. The company experienced a negative interest coverage ratio of -7.25 at the end of December 2023, indicating that EBIT was insufficient to cover interest expenses during that period.
However, prior to this, the interest coverage ratio improved to 3.15, 3.11, and 3.32 in the quarters leading up to September and December 2022, suggesting that the company's earnings were comfortably covering interest payments.
Before the significant drop in coverage occurred, the interest coverage ratio steadily declined over earlier periods, ranging from 0.24 to 2.75, indicating a weakening ability to cover interest expenses.
The negative trend in the interest coverage ratio indicates a potential financial strain for EchoStar Corporation in meeting its interest obligations. Analysts and investors may consider the company's ability to generate sufficient earnings in the future to improve its interest coverage ratio and maintain financial stability.