Sterling Construction Company Inc (STRL)
Solvency ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.53 | 2.50 | 2.82 | 2.93 | 2.82 | 2.87 | 2.97 | 2.92 | 2.89 | 3.04 | 3.44 | 3.34 | 3.31 | 3.43 | 3.31 | 3.45 | 3.44 | 3.56 | 3.97 | 4.25 |
The analysis of Sterling Construction Company Inc.'s solvency ratios from the presented data indicates a consistent financial position characterized by negligible or non-existent leverage risk during the examined periods.
Debt-to-Assets Ratio:
Throughout the entire timeline, the debt-to-assets ratio remains at zero, implying that the company has not reported any liabilities relative to its assets. This suggests that at every point in time, the company's assets are fully financed by shareholders' equity, denoting an unleveraged (debt-free) capital structure, or potentially, that liabilities were not recorded or significant enough to influence this ratio.
Debt-to-Capital Ratio:
Similarly, the debt-to-capital ratio remains at zero across all periods, reaffirming that the company has not relied on debt financing for its capital structure. This ratio's persistence at zero underscores the absence of leverage derived from debt relative to total capital, which consists solely of shareholders’ equity in this context.
Debt-to-Equity Ratio:
The debt-to-equity ratio also consistently reports a value of zero, further confirming no recorded debt obligations in relation to shareholders’ equity. This maintains the interpretation that the company's capital structure at all times is entirely equity-based, with no leverage from borrowed funds.
Financial Leverage Ratio:
The financial leverage ratio exhibits values greater than 1, ranging from approximately 2.50 to 4.25, with an overall decreasing trend over time. This ratio, which compares total assets to equity, shows the company's assets are financed predominantly through equity but with some degree of leverage resulting from internal operational efficiencies or other non-debt-related financial strategies. The declining trend from 4.25 to around 2.50 suggests a gradual reduction in leverage or an increase in equity relative to assets, enhancing financial stability.
Summary:
The collective data reveal that Sterling Construction Company Inc. maintains a debt-free capital structure, as evidenced by the uniform zeros in debt-related ratios. Despite this, the financial leverage ratios indicate that total assets are multiple times greater than equity, likely due to retention of earnings or other internal measures rather than external debt. The decreasing leverage ratio over time points towards an increasingly conservative financial stance, potentially reducing risk. Overall, the company's solvency profile appears robust, with no indication of debt-related liabilities affecting its financial stability during the period analyzed.
Coverage ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.75 | 14.03 | 9.49 | 7.89 | 7.77 | 7.23 | 6.66 | 6.77 | 6.95 | 7.76 | 8.18 | 7.72 | 6.54 | 5.73 | 5.12 | 4.36 | 4.09 | 3.50 | 2.88 | 2.77 |
The interest coverage ratio for Sterling Construction Company Inc. demonstrates a general upward trend over the analyzed period, indicating an improving capacity to meet interest obligations through operational earnings.
Starting with a ratio of 2.77 as of June 30, 2020, the figure exhibits steady growth, reaching an initial peak of approximately 5.73 by December 31, 2021. This suggests an enhancement in the company's ability to cover interest expenses without undue financial strain. Further increases are observed post-2021, with ratios rising consistently, culminating at approximately 15.75 by March 31, 2025, the latest date in the dataset.
This progressive improvement in the interest coverage ratio reflects a strengthening of earnings relative to interest expenses, potentially attributable to increased profitability, better cost management, or both. The ratio's substantial rise indicates that the company's financial health concerning debt serviceability has markedly improved, reducing the risk associated with interest payments.
The trend also suggests that Sterling Construction Company Inc. has gained greater financial resilience over time, bolstering confidence among creditors and investors regarding its capacity to sustainably meet interest obligations. Overall, the data signifies a positive trajectory in the company's ability to service its debt, aligning with a healthier financial position and prudent financial management.