Viad Corp (VVI)

The solvency ratios of Viad Corp. indicate the company's ability to meet its long-term financial obligations.

The trend in the Debt-to-assets ratio over the past five years shows a fluctuating pattern, with a decrease in 2020 and an increase in 2021 and 2022 before decreasing again in 2023. This ratio indicates that 40% of Viad Corp.'s assets are funded by debt in 2023.

Similarly, the Debt-to-capital ratio has also shown fluctuations over the years, with an increase in 2021 and 2022 but a decrease in 2023. As of 2023, 72% of the company's capital is financed through debt.

The Debt-to-equity ratio has exhibited a similar trend, with varying levels of reliance on debt to finance operations. In 2023, the ratio stands at 2.57, indicating that for every dollar of equity, the company has $2.57 in debt.

The Financial leverage ratio has also experienced fluctuations, showing an increasing trend in recent years. This ratio stood at 6.46 in 2023, highlighting the company's higher dependence on debt to finance its operations and assets.

Overall, Viad Corp.'s solvency ratios suggest a varying degree of reliance on debt to fund its operations and growth, with fluctuations in the ratios over the years impacting the company's financial leverage and risk profile. Monitoring these ratios over time can provide insights into the company's financial health and liquidity position.

---

Coverage ratios

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a better ability to cover interest costs. Looking at Viad Corp.'s interest coverage over the past five years, we observe fluctuations in the ratio.

In 2023, the interest coverage has improved to 1.97, up from 1.59 in 2022. This uptrend suggests Viad Corp. is in a better position to cover its interest expenses with operating income.

In 2021, the interest coverage was -2.07, indicating that Viad Corp.'s operating income was insufficient to cover its interest expenses. This negative ratio raises concerns about the company's financial health and ability to meet its debt obligations.

The significant decline in 2020, with an interest coverage of -6.98, further highlights the financial challenges Viad Corp. faced that year. A negative ratio suggests that the company's operating income was not enough to cover its interest payments, putting further strain on its financial position.

However, in 2019, Viad Corp. demonstrated a strong interest coverage ratio of 5.73, indicating a robust ability to cover interest expenses with its operating income.

Overall, the fluctuating interest coverage ratios of Viad Corp. over the past five years reflect variations in its financial performance and ability to manage its debt obligations. Investors and stakeholders should closely monitor these ratios to assess the company's financial stability and repayment capacity.