ScanSource Inc (SCSC)

Solvency ratios

Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.08 0.08 0.08 0.07 0.07 0.07 0.07 0.07 0.06 0.07 0.07 0.08 0.08 0.09 0.09 0.08 0.08 0.07 0.07 0.07
Debt-to-capital ratio 0.13 0.13 0.13 0.13 0.14 0.14 0.15 0.15 0.13 0.14 0.14 0.15 0.16 0.17 0.17 0.17 0.17 0.14 0.14 0.14
Debt-to-equity ratio 0.15 0.15 0.15 0.15 0.16 0.17 0.17 0.18 0.15 0.16 0.17 0.18 0.19 0.20 0.20 0.21 0.21 0.16 0.16 0.16
Financial leverage ratio 1.92 1.89 1.87 2.07 2.28 2.25 2.47 2.42 2.40 2.28 2.30 2.27 2.29 2.29 2.34 2.58 2.49 2.31 2.38 2.45

ScanSource Inc's solvency ratios, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have shown some fluctuations over the historical periods analyzed.

The debt-to-assets ratio has generally remained low and stable around 0.07 to 0.08, indicating that ScanSource has been efficient in managing its debt in relation to its total assets. This suggests that the company has a strong ability to cover its liabilities with its assets.

The debt-to-capital ratio has also been relatively stable, hovering around 0.13 to 0.15. This ratio shows the proportion of debt in the company's capital structure, with ScanSource maintaining a moderate level of debt compared to its total capital.

The debt-to-equity ratio has shown a slight increase over time, ranging from 0.15 to 0.21. This indicates that ScanSource has been relying more on debt financing relative to equity financing. However, the ratios are still within reasonable limits, showing that the company has maintained a balanced capital structure.

The financial leverage ratio has fluctuated significantly, ranging from 1.87 to 2.58. A high financial leverage ratio indicates a high level of financial risk due to increased reliance on debt. ScanSource's varying financial leverage ratios suggest changes in its capital structure and financial risk levels over time.

Overall, ScanSource's solvency ratios reflect a stable and relatively conservative approach to managing its debt levels and capital structure, with a focus on maintaining a healthy balance between debt and equity financing. Periodic fluctuations in these ratios may indicate adjustments in the company's financing strategies in response to changing business conditions.

Coverage ratios

Jun 30, 2024 Mar 31, 2024 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
Interest coverage 286.35 7.20 6.65 6.04 7.25 8.73 11.71 15.63 19.20 19.89 17.36 10.62 4.31 -27.85 -24.60 -18.68 -14.15 4.77 5.42 6.27

The interest coverage ratio of ScanSource Inc has shown fluctuations over the past few quarters. An interest coverage ratio greater than 1 indicates that the company is generating more than enough operating income to cover its interest expenses. The interest coverage ratio of the company has displayed a strong performance in recent quarters, with particularly robust numbers in the latest period, indicating a high ability to cover interest expenses.

However, the interest coverage ratio had negative values in some periods, reflecting a situation where the company's operating income was insufficient to cover interest expenses. This situation is a concern as it indicates a potential risk of financial distress if not addressed promptly.

Overall, it is essential for ScanSource Inc to ensure that its interest coverage remains at a healthy level consistently to demonstrate its financial stability and ability to meet its debt obligations. Monitoring and improving this ratio will be crucial for the company's long-term financial health and sustainability.