Upbound Group Inc. (UPBD)
Solvency ratios
| 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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 4.86 | 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 | 3.45 | 3.47 | 4.45 | 5.71 |
Upbound Group Inc.'s solvency ratios provide insights into the company's long-term financial stability and its ability to meet its debt obligations.
- Debt-to-assets ratio: The consistently low figure of 0.00 across all periods indicates that the company has not been utilizing debt to finance its assets, implying a minimal risk of insolvency due to debt obligations.
- Debt-to-capital ratio: Similar to the debt-to-assets ratio, the 0.00 ratio suggests that Upbound Group Inc. is not heavily reliant on debt as a source of capital, which can be viewed positively in terms of financial risk management.
- Debt-to-equity ratio: With a stable 0.00 ratio throughout the periods, it appears that the company has not been leveraging its equity with debt, indicating a conservative approach to financing operations.
- Financial leverage ratio: The financial leverage ratio, which measures the extent to which a company uses debt to finance its operations, shows variability over time. The ratio ranges from 2.96 to 5.83, with a general decreasing trend from 2020 to 2023. This suggests that the company's reliance on debt financing has decreased, potentially reducing financial risk but also possibly indicating a shift in the capital structure.
Overall, the consistent low values of the debt-related ratios reflect Upbound Group Inc.'s conservative financial approach with minimal debt usage, which could enhance the company's financial stability and reduce the risk of default. Additionally, the decreasing trend in the financial leverage ratio indicates a potential improvement in the company's financial health over time.
Coverage ratios
| 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 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 9.56 | 6.64 | 5.75 | 3.10 |
Upbound Group Inc.'s interest coverage ratio has shown fluctuations over the past several quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt from its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
In the most recent quarter as of December 31, 2023, Upbound Group Inc. had an interest coverage ratio of 1.47, which indicates that the company's operating income was able to cover its interest payments 1.47 times. The trend over the past eight quarters shows a general decline from a high of 15.54 in December 2020 to the current level.
The decreasing trend in the interest coverage ratio may raise concerns about Upbound Group Inc.'s ability to service its debt obligations from its operational earnings. A falling interest coverage ratio could indicate that the company is becoming less capable of meeting its interest expenses, potentially signaling financial distress.
It would be important for stakeholders to monitor Upbound Group Inc.'s interest coverage ratio closely and assess the company's overall financial health and debt management strategies to ensure sustainable operations in the long term.