Tidewater Inc (TDW)
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 | 0.29 | 0.30 | 0.31 | 0.31 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.16 | 0.15 | 0.01 | 0.13 | 0.12 | 0.13 | 0.18 | 0.19 | 0.18 | 0.18 | 0.24 |
| Debt-to-capital ratio | 0.36 | 0.37 | 0.38 | 0.38 | 0.17 | 0.16 | 0.16 | 0.17 | 0.17 | 0.20 | 0.19 | 0.02 | 0.16 | 0.16 | 0.17 | 0.22 | 0.24 | 0.21 | 0.22 | 0.28 |
| Debt-to-equity ratio | 0.56 | 0.59 | 0.61 | 0.62 | 0.20 | 0.19 | 0.20 | 0.20 | 0.20 | 0.24 | 0.24 | 0.02 | 0.20 | 0.19 | 0.20 | 0.29 | 0.31 | 0.27 | 0.27 | 0.39 |
| Financial leverage ratio | 1.93 | 1.97 | 1.98 | 2.01 | 1.51 | 1.52 | 1.50 | 1.52 | 1.53 | 1.53 | 1.56 | 1.53 | 1.52 | 1.51 | 1.52 | 1.58 | 1.59 | 1.56 | 1.56 | 1.63 |
Tidewater Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent of its leverage.
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. Tidewater's debt-to-assets ratio has been relatively stable, ranging from 0.13 to 0.31 over the past few quarters, with a slight increase in recent periods. The company finances around 13% to 31% of its assets through debt, indicating a moderate level of leverage.
2. Debt-to-capital ratio: This ratio shows the percentage of a company's capital structure that is financed by debt. Tidewater's debt-to-capital ratio has also been consistent, fluctuating between 0.16 and 0.38. The company typically finances around 16% to 38% of its capital through debt, reflecting a moderate to slightly high level of debt in its capital structure.
3. Debt-to-equity ratio: This ratio reveals the portion of a company's equity that is financed by debt. Tidewater's debt-to-equity ratio has shown a similar trend as the previous ratios, hovering between 0.19 and 0.62. The company finances around 19% to 62% of its equity through debt, suggesting a moderate to relatively high level of leverage.
4. Financial leverage ratio: This ratio measures the extent to which a company relies on debt to finance its assets. Tidewater's financial leverage ratio has been relatively stable, ranging from 1.50 to 2.01. The company's ratio indicates that it has a moderate level of financial leverage, with a range of 1.50 to 2.01 times, meaning it has used debt to finance its assets by 1.5 to 2 times the equity level.
Overall, Tidewater Inc maintains a moderate level of leverage based on its solvency ratios, which reflect a balance between debt and equity in its capital structure. Monitoring these ratios over time can help assess the company's ability to meet its debt obligations and manage financial risk.
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 | 5.44 | 4.81 | 3.76 | 7.08 | 5.54 | 3.40 | 1.55 | -0.95 | -3.76 | -5.12 | -6.10 | -3.83 | -3.91 | -7.91 | -7.73 | -6.40 | -6.64 | -3.16 | -2.98 | -16.00 |
The interest coverage ratio of Tidewater Inc has fluctuated significantly over the past few quarters, indicating variability in the company's ability to cover its interest obligations from its earnings.
From Dec 31, 2019, to Mar 31, 2020, the interest coverage ratio was negative, suggesting that the company's earnings were insufficient to cover its interest expenses during that period. However, there was an improvement in the interest coverage ratio in the following quarters, reaching a peak of 7.08 on Sep 30, 2023, reflecting a strong ability to meet interest payments from earnings.
Subsequently, the interest coverage ratio decreased on Dec 31, 2023, and Mar 31, 2024, but stayed above 4, indicating the company's earnings were still comfortably covering its interest expenses during that time.
Overall, Tidewater Inc's interest coverage ratio has shown volatility, with both positive and negative trends. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and manage financial risks effectively.