Thryv Holdings Inc (THRY)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 5.13 | 3.08 | 4.13 | 6.17 | 50.93 |
Thryv Holdings Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
1. Debt-to-Assets Ratio: This ratio indicates the proportion of the company's assets financed by debt. Thryv Holdings Inc's debt-to-assets ratio has been relatively stable over the past four years, ranging between 0.40 and 0.45. This suggests that, on average, around 40% to 45% of the company's assets are funded by debt.
2. Debt-to-Capital Ratio: The debt-to-capital ratio reflects the percentage of the company's capital structure that is attributable to debt. Thryv Holdings Inc's debt-to-capital ratio has shown fluctuations over the years, with a notable increase in 2023 to 0.70 from 0.55 in 2022. This indicates that debt accounted for 70% of the company's capital in 2023.
3. Debt-to-Equity Ratio: The debt-to-equity ratio measures the extent to which the company is funded by debt relative to shareholders' equity. Thryv Holdings Inc's debt-to-equity ratio has also displayed variability, indicating varying levels of reliance on debt for financing. The ratio stood at 2.28 in 2023, indicating that the company had $2.28 in debt for every $1 of equity.
4. Financial Leverage Ratio: This ratio provides an insight into the company's financial risk by comparing total assets to shareholders' equity. Thryv Holdings Inc's financial leverage ratio has fluctuated significantly over the years, ranging from 3.08 to 6.17. A higher financial leverage ratio indicates higher financial risk due to increased reliance on debt financing.
Overall, the analysis of Thryv Holdings Inc's solvency ratios suggests that the company has maintained a relatively stable debt-to-assets ratio but has experienced fluctuations in its debt-to-capital, debt-to-equity, and financial leverage ratios over the past four years. This fluctuation in ratios may point towards changes in the company's capital structure and its ability to manage financial risk effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.13 | 4.33 | 2.86 | 2.22 | 1.64 |
Thryv Holdings Inc's interest coverage ratio has been showing a declining trend over the past four years. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
In 2023, the interest coverage ratio decreased to 1.12 from the previous year's 3.34. This significant drop suggests that Thryv Holdings Inc's ability to cover its interest payments with operating income weakened substantially. A ratio of 1.12 indicates that the company's operating income is only sufficient to cover its interest expense 1.12 times over, signaling a potential risk of financial distress.
It is important to monitor Thryv Holdings Inc's interest coverage ratio closely in the future to assess its ability to manage its debt obligations and financial health effectively. A declining interest coverage ratio may raise concerns among investors and creditors about the company's financial stability and ability to service its debt. Analysis and actions to improve the interest coverage ratio may be necessary to mitigate financial risks.