NCR Voyix Corporation (VYX)

NCR Voyix Corporation's solvency ratios indicate the extent of the company's leverage and its ability to meet its financial obligations. Looking at the trend over the past five years:

1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. It has been increasing steadily from 0.36 in 2019 to 0.51 in 2023, indicating that NCR Voyix is relying more on debt to fund its assets.

2. Debt-to-capital ratio: This ratio shows the percentage of the company's capital that comes from debt. The increase from 0.75 in 2019 to 0.99 in 2023 suggests a higher reliance on debt for capital, which may indicate an increased financial risk.

3. Debt-to-equity ratio: This ratio indicates the proportion of equity and debt financing in the company's capital structure. The significant rise from 2.97 in 2019 to 102.52 in 2023 is concerning, as it shows a substantial increase in debt relative to equity, highlighting potential financial risk and decreased financial stability.

4. Financial leverage ratio: This ratio compares the company's total assets to its equity capital. The escalating trend from 8.14 in 2019 to 199.60 in 2023 signifies a significant increase in leverage, indicating that the company is increasingly reliant on debt to finance its assets, posing higher financial risk.

Overall, the solvency ratios of NCR Voyix Corporation suggest a growing reliance on debt financing over the years, potentially impacting its financial stability and risk profile. It is essential for the company to carefully manage its debt levels and consider strategies to improve its solvency position to ensure long-term financial health.

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Coverage ratios

NCR Voyix Corporation's interest coverage ratio has exhibited fluctuating trends over the past five years. The ratio stood at 0.26 in 2023, indicating a significant decline from the prior year. This suggests that the company's ability to cover its interest expenses with its operating income deteriorated considerably in 2023. Furthermore, the ratio is notably lower than in 2021 and 2019, signaling potential difficulties in meeting interest obligations. This downward trend in interest coverage raises concerns about the company's financial health and its ability to service its debt obligations. It is essential for NCR Voyix Corporation to closely monitor and improve its interest coverage ratio to ensure financial stability and long-term viability.