ViaSat Inc (VSAT)

ViaSat Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing. The trends observed over the last five years indicate fluctuations in the company's solvency position.

The debt-to-assets ratio has shown some variability, ranging from 0.22 to 0.31, with an increase in 2021 followed by a decline in 2023. This ratio reflects the proportion of the company's assets financed by debt, indicating that, on average, 27% of ViaSat's assets were funded by debt as of March 31, 2024.

The debt-to-capital ratio has exhibited a similar pattern, with fluctuations between 0.31 and 0.46. This ratio indicates that debt constitutes, on average, 46% of ViaSat's capital structure as of March 31, 2024. The increase in this ratio suggests a higher reliance on debt financing compared to the previous year.

The debt-to-equity ratio has shown considerable variation, ranging from 0.44 to 0.87. This ratio indicates the extent to which the company's operations are funded by creditors versus shareholders, with an average debt-to-equity ratio of 0.87 as of March 31, 2024. The notable increase in this ratio compared to the prior year suggests a higher level of financial leverage.

The financial leverage ratio has also demonstrated volatility, ranging from 2.02 to 3.25. This ratio represents the company's total assets relative to its equity, emphasizing the impact of debt financing on ViaSat's balance sheet. As of March 31, 2024, the financial leverage ratio stood at 3.25, indicating that the company has substantial debt obligations compared to its equity base.

Overall, the solvency ratios of ViaSat Inc reflect a mix of debt financing strategies and changes in capital structure over the past five years. The trend towards higher debt-to-equity and financial leverage ratios may suggest increased financial risk and a need for close monitoring of the company's long-term debt management strategies.

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Coverage ratios

ViaSat Inc's interest coverage ratio has fluctuated significantly over the past five years.

In March 2024, the interest coverage ratio stands at -2.02, indicating that the company's operating profits are insufficient to cover its interest expenses. This could be a cause for concern as it suggests that ViaSat Inc may be facing financial difficulties that could impact its ability to meet its debt obligations.

The interest coverage ratio was significantly higher in March 2023 at 43.31, reflecting a strong ability to cover interest payments with operating income. This indicates a healthy financial position during that period.

In March 2022, the interest coverage ratio was -0.77, implying that the company's operating income was barely enough to cover its interest expenses, raising questions about its financial stability.

The ratio improved slightly in March 2021 and 2020 but remained below 1, indicating that ViaSat Inc was just able to cover its interest payments with its operating income during those years.

Overall, the inconsistent performance of ViaSat Inc's interest coverage ratio over the past five years suggests the company has experienced challenges in generating sufficient operating income to meet its interest obligations, with the most recent ratio indicating a particularly concerning situation.