Tidewater Inc (TDW)
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 | 1.86 | 1.98 | 1.50 | 1.56 | 1.52 |
Based on the data provided for Tidewater Inc, the solvency ratios indicate a very low level of debt relative to its assets, capital, and equity over the five-year period from 2020 to 2024.
The Debt-to-assets ratio consistently stands at 0.00 for each year, indicating that the company's total debt is effectively non-existent in relation to its total assets. This suggests that Tidewater Inc has minimal financial risk associated with its asset base.
Similarly, the Debt-to-capital ratio also remains at 0.00 across all years, indicating that the company has not utilized debt significantly to finance its operations in relation to its total capital structure. This implies that Tidewater Inc has a strong financial position with little reliance on borrowed funds for its funding needs.
The Debt-to-equity ratio also remains constant at 0.00 for each year, suggesting that the company's creditors provide minimal financing in comparison to its shareholders' equity. This indicates a low level of financial leverage and demonstrates a conservative capital structure.
The Financial leverage ratio, which measures the extent of a company's financial leverage, shows varying values over the period, ranging from 1.50 to 1.98. While there is some fluctuation in this ratio, the values are relatively low, indicating that Tidewater Inc relies more on equity financing than debt to support its operations.
Overall, the solvency ratios demonstrate that Tidewater Inc maintains a very conservative financial strategy with little reliance on debt financing, resulting in a strong solvency position and lower financial risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.15 | 2.80 | 0.87 | -6.94 | -7.18 |
To analyze Tidewater Inc's interest coverage over the past few years, we observe a concerning trend.
As of December 31, 2020, the interest coverage stood at -7.18, indicating that the company's operating income was insufficient to cover its interest expenses, putting it at a higher risk of default. This negative ratio persisted into December 31, 2021, with a slightly improved figure of -6.94, still reflecting financial distress.
However, there seems to be a notable improvement in the company's financial health by December 31, 2022, as the interest coverage ratio turned positive to 0.87. This suggests that Tidewater Inc started generating enough operating income to cover its interest obligations, although there is room for further enhancement.
By December 31, 2023, the interest coverage ratio increased to 2.80, indicating a more comfortable position in meeting interest payments. This improvement suggests better financial stability and a lower risk of default.
As of the most recent data available on December 31, 2024, the interest coverage ratio further improved to 4.15, demonstrating a significant enhancement in the company's ability to service its debt obligations from its operating income.
Overall, while there have been positive developments in Tidewater Inc's interest coverage over the years, it is important to monitor this ratio continuously to ensure the company maintains a healthy financial position and can meet its debt obligations in the future.