VeriSign Inc (VRSN)
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 | 1.02 | 1.06 | 1.07 | 1.02 | 1.03 | 1.02 | 1.01 | 0.91 | 0.90 | 0.98 | 1.02 | 1.00 | 1.01 | 1.01 | 0.98 | 1.02 | 0.96 | 0.95 | 0.95 | 0.93 |
| Debt-to-capital ratio | 8.56 | 11.46 | 10.46 | 9.19 | 7.92 | 7.30 | 5.39 | 3.56 | 3.40 | 4.86 | 4.87 | 4.63 | 4.48 | 4.44 | 4.60 | 4.72 | 6.01 | 5.33 | 4.95 | 4.70 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Solvency ratios provide insight into a company's ability to meet its long-term debt obligations. Verisign Inc.'s solvency ratios, specifically the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, show the following trends:
1. Debt-to-assets ratio: Verisign Inc.'s debt-to-assets ratio has been relatively stable in recent quarters, hovering around 1.02 to 1.07. This indicates that the company's total debt level is approximately equal to its total assets, suggesting a moderate level of leverage.
2. Debt-to-capital ratio: Verisign Inc.'s debt-to-capital ratio has displayed significant fluctuations over the periods provided, ranging from 3.56 to 11.46. The ratios indicate the proportion of the company's capital structure that is financed by debt, with higher ratios signaling greater reliance on debt financing.
3. Debt-to-equity ratio: The data does not provide information on Verisign Inc.'s debt-to-equity ratio for the periods listed, potentially indicating either that the company does not have any long-term debt or that the calculation was not relevant to their financial reporting.
Overall, Verisign Inc.'s solvency ratios suggest a moderate to high level of debt relative to its assets and capital structure. Analysts and investors should continue monitoring these ratios to assess the company's long-term financial health and ability to service its debt obligations.
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 | 13.78 | 13.64 | 13.30 | 12.98 | 12.61 | 12.29 | 12.02 | 11.05 | 10.39 | 9.74 | 9.19 | 9.28 | 9.31 | 9.23 | 9.31 | 9.29 | 9.27 | 9.23 | 9.06 | 8.28 |
Verisign Inc.'s interest coverage ratio has shown a positive trend over the past eight quarters, indicating the company's ability to cover its interest expenses with earnings before interest and taxes (EBIT). The interest coverage ratio has consistently been above 10, which is generally considered a sign of financial strength and stability.
The interest coverage ratio peaked at 34.27 in Q4 2023, reflecting a significant increase in the company's ability to cover its interest payments compared to previous quarters. This high ratio suggests that Verisign Inc. has a comfortable buffer to handle its interest obligations.
The gradual improvement in the interest coverage ratio from Q1 2022 to Q4 2023 indicates that the company's earnings are growing at a faster pace than its interest expenses. This positive trend is a positive signal for investors and creditors, as it suggests that Verisign Inc. is effectively managing its debt obligations and generating sufficient earnings to cover its financial commitments.
Overall, the consistently strong interest coverage ratios of Verisign Inc. demonstrate the company's financial stability and ability to manage its debt effectively, which is essential for sustaining long-term growth and profitability.