VeriSign Inc (VRSN)

The solvency ratios of Verisign Inc. reflect its ability to meet its long-term financial obligations and the extent to which the company relies on debt to finance its operations.

1. Debt-to-assets ratio:
Verisign's debt-to-assets ratio has fluctuated over the past five years, ranging from 0.90 to 1.03. The ratio stood at 1.02 as of December 31, 2023. This indicates that for every dollar of assets, the company has $1.02 in debt. A higher ratio suggests a greater reliance on debt financing, which may increase financial risk.

2. Debt-to-capital ratio:
The debt-to-capital ratio provides insights into the proportion of a company's capital structure funded by debt. Verisign's ratio has varied from 3.40 to 8.56, with a value of 8.56 at the end of 2023. This implies that debt represents 8.56 parts out of every 1 part of total capital. A higher ratio signifies a larger debt component in the capital structure, which can lead to higher interest expenses and financial risk.

3. Debt-to-equity ratio and financial leverage ratio:
The data provided does not include the debt-to-equity ratio and financial leverage ratio for Verisign Inc., limiting a comprehensive assessment of its solvency from these perspectives. These ratios would have provided further insights into the company's reliance on equity and the overall leverage in its capital structure.

In summary, Verisign Inc.'s solvency ratios suggest fluctuating levels of debt relative to assets and capital over the past five years. The company's high debt-to-assets and debt-to-capital ratios as of December 31, 2023, indicate significant reliance on debt financing, which can impact financial stability and flexibility.

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Coverage ratios

Verisign Inc.'s interest coverage ratio has exhibited a positive trend over the past five years, indicating the company's ability to comfortably cover its interest expenses with its earnings before interest and taxes (EBIT). The interest coverage ratio has significantly improved from 12.59 in 2019 to 34.27 in 2023, reflecting a substantial increase in the company's ability to meet its interest obligations.

The consistently high interest coverage ratios suggest that Verisign Inc. has a robust ability to service its debt and indicates financial stability. The significant improvement in the interest coverage ratio over the years highlights the company's enhanced profitability and earnings levels relative to its interest expenses.

Overall, the upward trend in Verisign Inc.'s interest coverage ratio signifies a positive financial performance and a strong capacity to meet its interest payment obligations, which could be attractive to investors and creditors.