Vistra Energy Corp (VST)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.21 | 5.80 | 5.69 | 5.98 | 6.69 | 6.30 | 6.95 | 4.50 | 3.58 | 4.96 | 4.45 | 4.24 | 3.01 | 3.02 | 3.27 | 3.36 | 3.34 | 3.39 | 3.36 | 3.28 |
Solvency ratios are crucial for assessing a company's ability to meet its long-term financial obligations. Vistra Corp's solvency ratios have shown some fluctuations over the past eight quarters:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Vistra Corp's debt-to-assets ratio has been relatively stable, ranging between 0.38 and 0.44. A higher ratio suggests a greater reliance on debt to fund assets.
2. Debt-to-capital ratio: This ratio shows the percentage of capital that comes from debt. Vistra Corp's debt-to-capital ratio has fluctuated between 0.69 and 0.73. The company is using debt to finance around 69% to 73% of its capital, indicating moderate reliance on debt financing.
3. Debt-to-equity ratio: This ratio measures the extent to which debt is used to finance the company's operations compared to equity. Vistra Corp's debt-to-equity ratio has varied from 2.23 to 2.71. A higher ratio signifies a higher level of financial risk due to increased debt financing.
4. Financial leverage ratio: This ratio reflects the company's total assets relative to its equity. Vistra Corp's financial leverage ratio fluctuated between 5.69 and 6.95. A higher ratio suggests that the company is relying more on debt to finance its assets, which can amplify returns but also increase financial risks.
Overall, Vistra Corp's solvency ratios indicate a moderate level of debt utilization to finance its operations and assets. The company's management of debt levels and financial leverage should be monitored to ensure sustainable long-term financial stability and growth.
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 | 3.70 | 3.87 | 4.65 | 0.43 | -3.28 | -0.44 | -2.79 | 2.16 | -3.51 | -5.94 | -4.68 | -3.72 | 2.43 | 2.94 | 1.97 | 2.13 | 2.53 | 1.70 | 2.15 | 1.74 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a healthier financial position, as it signifies that the company is generating enough operating income to easily meet its interest obligations.
Analyzing Vistra Corp's interest coverage ratio over the past eight quarters, we can observe a fluctuating trend. In Q4 2023, the ratio stands at 5.10, indicating that the company's operating income is more than sufficient to cover its interest expenses. This suggests a strong financial position during that period.
Similarly, in Q3 2023 and Q2 2023, the interest coverage ratios were 3.93 and 3.97 respectively, indicating healthy coverage of interest expenses. However, in Q1 2023, the ratio dropped significantly to 0.55, raising concerns about the company's ability to meet its interest obligations with operating income alone.
Looking further back, in Q4 2022 and Q3 2022, Vistra Corp had negative interest coverage ratios of -2.03 and -0.32 respectively, indicating that its operating income was insufficient to cover interest expenses during those periods. The company's financial position improved in Q2 and Q1 2022, with interest coverage ratios of -2.02 and 1.97 respectively.
In conclusion, Vistra Corp's interest coverage ratio has shown variability over the past eight quarters, with some periods of strong coverage and others where the company struggled to cover its interest expenses. It is essential for investors and analysts to closely monitor these ratios to assess the company's financial health and ability to meet its debt obligations.