Upbound Group Inc. (UPBD)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.21 | 4.21 | 4.39 | 4.54 | 4.86 | 4.40 | 4.13 | 4.09 | 5.26 | 5.05 | 4.95 | 5.31 | 5.83 | 3.58 | 3.68 | 4.05 | 2.96 | 3.07 | 3.24 | 3.38 |
Upbound Group Inc. has consistently maintained a debt-to-assets ratio of 0.00 over the past several years, indicating that the company has no debt in relation to its total assets. This implies a strong solvency position, as the company's assets are not encumbered by debt.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained at 0.00 throughout the same period, indicating that the company's capital structure is devoid of debt. This suggests that Upbound Group Inc. has been relying on equity financing rather than debt to fund its operations and investments.
The financial leverage ratio, which measures the extent to which the company relies on debt to finance its operations, shows fluctuations over the past few years. The ratio peaked at 5.83 as of December 31, 2021, indicating a higher level of financial leverage at that point. However, it subsequently declined and stabilized around 4.00 in the following periods, suggesting a moderation in the company's use of debt in its capital structure.
Overall, based on the solvency ratios analyzed, Upbound Group Inc. appears to have a strong financial position with minimal debt exposure and a stable capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.61 | 2.32 | 2.19 | 2.29 | 1.47 | 1.37 | 1.23 | 1.07 | 1.70 | 1.80 | 2.18 | 2.76 | 3.74 | 5.10 | 7.74 | 10.95 | 15.54 | 14.98 | 10.30 | 10.95 |
The interest coverage ratio of Upbound Group Inc. has shown a declining trend over the analyzed period, starting at a healthy level of 10.95 in March 2020 and reaching a low of 1.07 in March 2023. This ratio indicates the company's ability to meet its interest obligations with its operating income.
The decreasing trend in interest coverage could signal potential financial risk as the company's earnings may not be sufficient to cover its interest payments. A lower interest coverage ratio suggests that the company is taking on more debt relative to its operating income, which could lead to difficulties in servicing its debt obligations in the long run.
Upbound Group Inc. should closely monitor its interest coverage ratio and take necessary actions to improve it, such as increasing operational efficiency, reducing debt levels, or growing profitability. A consistent and sustained improvement in the interest coverage ratio would indicate a healthier financial position and increased capacity to meet its interest expenses.