Verra Mobility Corp (VRRM)
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 | 6.09 | 3.80 | 4.04 | 3.94 | 4.25 | 4.35 | 4.10 | 7.22 | 7.60 | 8.82 | 7.29 | 6.61 | 7.07 | 6.08 | 4.93 | 4.85 | 3.95 | 3.99 | 4.08 | 3.99 |
Verra Mobility Corp's solvency ratios indicate a stable financial position with consistently low debt levels relative to its assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at 0.00 throughout the analyzed periods, suggesting the company has not been reliant on debt to finance its operations.
However, the financial leverage ratio has shown some fluctuations over time, ranging from 3.94 to 8.82. This ratio indicates the extent to which the company is using debt to finance its operations compared to equity. The increase in the financial leverage ratio in some periods may indicate a higher reliance on debt financing, which could increase financial risk.
Overall, Verra Mobility Corp's solvency ratios reflect a conservative approach to debt management, with a focus on maintaining a strong financial position and minimal leverage. Investors and stakeholders may view this as a positive indicator of the company's ability to meet its financial obligations and withstand economic uncertainties.
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 | 1.94 | 3.10 | 2.93 | 2.74 | 2.59 | 2.42 | 2.26 | 2.36 | 2.38 | 2.65 | 3.18 | 3.08 | 2.67 | 2.14 | 1.49 | 0.48 | 1.05 | 1.31 | 1.55 | 1.92 |
The interest coverage ratio of Verra Mobility Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt.
In March 2020, the interest coverage ratio was 1.92, indicating that the company generated enough operating income to cover its interest expenses 1.92 times. However, this ratio decreased to 0.48 by March 31, 2021, reflecting a significant decline in the company's ability to cover its interest payments.
Subsequently, the interest coverage ratio improved, reaching a peak of 3.18 on June 30, 2022, and remaining relatively stable around that level until September 30, 2024. This indicates that the company's operating income was sufficient to cover its interest costs more than three times during this period.
However, by December 31, 2024, the interest coverage ratio dropped to 1.94, showing a slight decrease compared to the previous quarters. While the ratio is above 1, indicating that the company can cover its interest expenses, a declining trend suggests potential challenges in meeting debt obligations in the future.
Overall, the trend in Verra Mobility Corp's interest coverage ratio suggests fluctuations in the company's ability to meet its interest payments, potentially indicating varying levels of financial risk and stability over the analyzed period.