Verra Mobility Corp (VRRM)
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 | 6.09 | 4.25 | 7.60 | 7.07 | 3.95 |
Verra Mobility Corp's solvency ratios indicate a consistently strong financial position with minimal reliance on debt to support its operations.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. Verra Mobility Corp has maintained a debt-to-assets ratio of 0.00 across the five years analyzed. This suggests that the company's assets are predominantly funded by equity rather than debt, indicating a low financial risk related to debt obligations.
2. Debt-to-capital ratio: The debt-to-capital ratio compares a company's total debt to its total capital (debt plus equity). Verra Mobility Corp also shows a consistent debt-to-capital ratio of 0.00 over the five-year period. This further reinforces the company's strong capital structure and ability to support its operations without relying heavily on debt financing.
3. Debt-to-equity ratio: This ratio measures the proportion of a company's financing that comes from debt as opposed to equity. Similar to the previous ratios, Verra Mobility Corp's debt-to-equity ratio remains at 0.00 throughout the analyzed years. This indicates that the company has been able to maintain a healthy balance between debt and equity in its capital structure.
4. Financial leverage ratio: The financial leverage ratio indicates the extent to which a company uses debt to finance its assets. Verra Mobility Corp's financial leverage ratio fluctuates over the years, ranging from 3.95 to 7.60. Despite these fluctuations, the ratios generally indicate that the company has, on average, a moderate level of financial leverage, suggesting a balanced approach to debt financing without excessive risk.
In conclusion, based on the analysis of Verra Mobility Corp's solvency ratios, the company demonstrates a solid financial position with low debt dependency and prudent management of its capital structure, which bodes well for its long-term financial stability and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.07 | 2.01 | 2.85 | 2.51 | 1.02 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a better ability to cover interest expenses.
Analyzing the interest coverage of Verra Mobility Corp over the years, we can see an improvement in its ability to cover interest costs. In December 2020, the interest coverage was quite low at 1.02, suggesting limited capacity to meet interest payments. However, the company showed significant improvement in the following years.
By December 2021, the interest coverage ratio increased to 2.51, indicating a more comfortable position in servicing its interest obligations. This positive trend continued in 2022 and 2023, with the interest coverage ratios of 2.85 and 2.01 respectively, showing a generally stable ability to cover interest expenses.
In December 2024, the interest coverage ratio slightly declined to 2.07, but it still remained above 2, signifying that Verra Mobility Corp continues to have a satisfactory capacity to meet its interest payments.
Overall, the trend in Verra Mobility Corp's interest coverage ratio reflects an improving financial position with sufficient earnings to cover interest expenses, which is a positive indicator for the company's creditors and investors.