Upbound Group Inc. (UPBD)
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 | 4.86 | 5.26 | 5.83 | 2.96 | 3.45 |
Upbound Group Inc. has consistently maintained a debt-free capital structure over the past five years as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at 0.00. This suggests that the company has been funding its operations and investments primarily through equity financing rather than taking on debt.
However, the financial leverage ratio indicates that the company has been gradually increasing its leverage over the years. The ratio has increased from 2.96 in 2020 to 4.86 in 2023, indicating that the company's reliance on debt to finance its assets has increased significantly. Although the leverage ratio is still relatively moderate, this trend suggests a shift towards a more leveraged financial structure.
Overall, while Upbound Group Inc. has maintained a strong solvency position with minimal debt obligations, it is important for the company to closely monitor and manage its increasing leverage to ensure sustainable financial health in the long term.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.47 | 1.70 | 3.74 | 15.54 | 8.21 |
Interest coverage measures a company's ability to meet its interest obligations on outstanding debt. Upbound Group Inc.'s interest coverage has been fluctuating over the past five years, trending downwards from 15.54 in 2020 to 1.47 in 2023. This indicates a declining ability to cover interest payments with operating income. A lower interest coverage ratio suggests increased financial risk and vulnerability to potential cash flow constraints. It is essential for Upbound Group Inc. to closely monitor and improve its interest coverage ratio to ensure financial stability and mitigate the risk of default on its debt obligations.