VeriSign Inc (VRSN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.06 | 1.02 | 1.03 | 0.90 | 1.01 |
| Debt-to-capital ratio | — | 8.56 | 7.92 | 3.40 | 4.48 |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
The Debt-to-assets ratio for VeriSign Inc has shown fluctuation over the years, starting at 1.01 in 2020, decreasing to 0.90 in 2021, then increasing to 1.03 in 2022, and remaining relatively stable at around 1.02-1.06 in the following years. This ratio indicates the proportion of the company's assets that are financed by debt, with lower values generally considered more favorable as they suggest lower financial risk.
The Debt-to-capital ratio reveals a similar trend with more significant fluctuations, starting at 4.48 in 2020, decreasing to 3.40 in 2021, then surging to 7.92 in 2022, and further increasing to 8.56 in 2023. Unfortunately, the data for 2024 is missing (marked as a dash). This ratio indicates the proportion of the company's capital structure that is financed by debt and is essential for assessing financial risk.
The Debt-to-equity ratio and Financial leverage ratio are marked as not available (dash) for all years, suggesting that this information was not disclosed or may not be applicable for VeriSign Inc. These ratios are also crucial for understanding the company's solvency position in terms of its debt and equity mix and leverage levels.
Overall, based on the Debt-to-assets and Debt-to-capital ratios provided, VeriSign Inc has shown some variability in its solvency position over the years, with fluctuations that may warrant further investigation into the company's financial health and risk management strategies.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 14.05 | 13.29 | 12.52 | 10.41 | 9.14 |
VeriSign Inc's interest coverage has shown a consistent improvement over the years, starting at 9.14 in December 31, 2020, and steadily increasing to 14.05 by December 31, 2024. This upward trend indicates that the company's earnings before interest and taxes (EBIT) has been progressively more than sufficient to cover its interest expenses. A higher interest coverage ratio suggests a lower risk of default on debt obligations and reflects the company's financial stability. Based on the data provided, VeriSign Inc's ability to meet its interest payments has strengthened over the years, indicating a positive trajectory in managing its debt obligations effectively.