Upbound Group Inc. (UPBD)
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 | 4.21 | 4.86 | 5.26 | 5.83 | 2.96 |
Upbound Group Inc. demonstrates a consistently strong solvency position based on its solvency ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from 2020 to 2024, indicating that the company has no debt in relation to its assets or capital. This suggests that Upbound has been financing its operations primarily through equity and retained earnings rather than external borrowing.
The Financial leverage ratio, on the other hand, shows a decreasing trend from 2.96 in 2020 to 4.21 in 2024. Although this ratio has been increasing slightly, it still indicates that the company is mainly relying on equity to finance its operations rather than debt. A lower financial leverage ratio generally implies lower financial risk and greater financial stability.
Overall, based on these solvency ratios, Upbound Group Inc. appears to have a solid financial structure with low debt levels and a strong equity base, which is favorable for its long-term financial health and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.61 | 1.47 | 1.70 | 3.74 | 15.54 |
The interest coverage ratio for Upbound Group Inc. has shown a significant decline over the years, indicating a potential weakening financial position in terms of its ability to cover interest expenses with its operating income.
In December 2020, the interest coverage ratio was healthy at 15.54, suggesting that the company's operating income was more than sufficient to cover its interest expenses. However, by December 2024, the interest coverage ratio had decreased to 2.61, reflecting a decrease in the company's ability to cover its interest obligations.
The declining trend in the interest coverage ratio raises concerns about Upbound Group Inc.'s financial health and its ability to meet its debt obligations comfortably. It may be advisable for stakeholders to closely monitor the company's financial performance and consider potential strategies to improve its interest coverage ratio in the future.