Verra Mobility Corp (VRRM)

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	0.57	0.59	0.59	0.67	0.68	0.70	0.68	0.66	0.66	0.65	0.62	0.65	0.61	0.61	0.62	0.61	0.60	0.62	0.64	0.63
Debt-to-capital ratio	0.71	0.72	0.71	0.83	0.84	0.86	0.83	0.81	0.82	0.80	0.75	0.76	0.73	0.72	0.73	0.72	0.73	0.72	0.73	0.74
Debt-to-equity ratio	2.44	2.55	2.43	4.81	5.15	6.18	4.93	4.37	4.64	3.96	3.05	3.13	2.64	2.56	2.70	2.53	2.71	2.62	2.77	2.82
Financial leverage ratio	4.25	4.35	4.10	7.22	7.60	8.82	7.29	6.61	7.07	6.08	4.93	4.85	4.33	4.21	4.38	4.16	4.55	4.20	4.35	4.48

The solvency ratios of Verra Mobility Corp indicate its ability to meet its long-term financial obligations and the extent to which its capital structure is reliant on debt.

The debt-to-assets ratio has been relatively stable over recent quarters, ranging between 0.58 and 0.71. This ratio measures the proportion of the company's assets funded by debt, with lower values generally regarded as favorable as they suggest lower financial risk. Verra Mobility Corp's decreasing trend in this ratio indicates a lower reliance on debt to finance its assets.

The debt-to-capital ratio has also shown stability, fluctuating between 0.71 and 0.84. This ratio reflects the percentage of the company's capital structure that is financed by debt and is useful in assessing leverage. Verra Mobility Corp's consistent values suggest a balanced mix of debt and equity in its capital structure.

The debt-to-equity ratio has displayed a decreasing trend from 5.25 to 2.46 over several quarters. This ratio signifies the proportion of the company's financing that comes from debt as compared to equity. Verra Mobility Corp's diminishing ratio implies a reduced reliance on debt to finance its operations, which is generally positive for solvency.

The financial leverage ratio, which demonstrates the company's reliance on debt to fund its operations, has also shown a decreasing trend from 8.82 to 4.25. A lower value indicates a lower level of financial risk as it suggests less reliance on debt financing. Verra Mobility Corp's improving financial leverage ratio reflects a healthier balance between debt and equity in its capital structure.

In summary, Verra Mobility Corp's solvency ratios suggest a decreasing reliance on debt for financing its operations, indicating an improving financial risk profile and stronger solvency position over the analyzed periods.

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	2.00	2.40	2.30	2.58	2.83	2.95	3.38	2.93	2.51	1.67	1.11	0.03	1.02	1.59	1.71	2.21	1.65	0.61	0.42	0.31

The interest coverage ratio of Verra Mobility Corp has remained relatively stable over the past eight quarters, ranging from 2.18 to 2.95. This indicates that the company's ability to cover its interest payments from its operating income has been consistent. A ratio above 1 suggests the company is generating more than enough earnings to cover its interest expenses, which is a positive sign for creditors and investors. The slight fluctuations in the ratio suggest that the company has maintained a healthy level of profitability to meet its interest obligations. Overall, Verra Mobility Corp's interest coverage ratio demonstrates financial stability and the ability to meet its debt obligations comfortably.