ViaSat Inc (VSAT)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.39 | 3.25 | 2.02 | 2.43 | 2.27 |
ViaSat Inc's solvency ratios indicate a strong financial position with consistent low levels of debt relative to assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio are all at 0.00, reflecting the company's ability to finance its operations primarily through equity rather than debt.
The Financial leverage ratio has shown some variability, increasing from 2.27 in March 31, 2021, to 3.39 in March 31, 2025. While the increase in the financial leverage ratio suggests a higher reliance on debt financing relative to equity, the overall ratio remains at moderate levels, indicating manageable financial risk.
Overall, ViaSat Inc's solvency ratios demonstrate a prudent approach to managing its capital structure, with a focus on maintaining a healthy balance between debt and equity to support sustainable growth and financial stability.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | -1.98 | -5.05 | -3.76 | -1.41 |
Interest coverage ratio measures the ability of a company to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to pay interest expenses. However, negative values suggest that the company is not generating enough operating income to cover its interest expenses.
For ViaSat Inc, the interest coverage has been consistently negative over the past five years, indicating that the company has not been able to cover its interest payments with its operating income. The trend shows a worsening situation from -1.41 in March 2021 to -5.05 in March 2023, before slightly improving to -1.98 in March 2024. Notably, the ratio dropped to 0.00 in March 2025, suggesting that the company's operating income was insufficient to cover its interest expenses for that period.
A consistent negative interest coverage ratio raises concerns about ViaSat Inc's financial health and ability to meet its debt obligations. Investors and creditors may closely monitor this ratio to assess the company's risk of defaulting on its debt payments. It is crucial for the company to improve its profitability and cash flow generation to enhance its ability to service its debt in the future.