Werner Enterprises Inc (WERN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 2.10 | 2.07 | 2.15 | 1.95 | 1.80 |
Werner Enterprises Inc's solvency ratios indicate a consistently low level of debt relative to its assets, capital, and equity over the past five years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported at 0.00, suggesting the company has maintained a strong financial position with little reliance on debt to finance its operations.
However, the Financial leverage ratio has shown a slight upward trend from 1.80 in 2020 to 2.10 in 2024. This ratio measures the proportion of the company's assets that are financed by debt compared to its equity. While the increase in the financial leverage ratio indicates a slightly higher level of debt relative to equity over the years, the ratio values are still relatively low, implying that Werner Enterprises Inc has a conservative capital structure and poses lower financial risk.
Overall, Werner Enterprises Inc's solvency ratios demonstrate a prudent approach to managing its debt obligations and maintaining a healthy financial position, ensuring stability and resilience in the face of economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.08 | 5.41 | 28.46 | 56.57 | 51.29 |
Interest coverage ratio measures a company's ability to meet its interest payments on debt obligations. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income.
For Werner Enterprises Inc, the interest coverage ratio has shown fluctuations over the years. In December 2020 and 2021, the company had robust interest coverage ratios of 51.29 and 56.57, respectively. This suggests that the company had a comfortable margin to cover its interest expenses with its operating income during those years.
However, there was a notable decline in the interest coverage ratio in December 2022 to 28.46, indicating a slight weakening in the company's ability to cover interest payments with operating income. The ratio further declined significantly to 5.41 in December 2023 and dropped even lower to 2.08 in December 2024. These sharp decreases may raise concerns about the company’s ability to service its debt obligations from its operating earnings in the future.
Overall, the trend in Werner Enterprises Inc's interest coverage ratio shows a mix of strong performance and potential challenges, reflecting the importance of monitoring the company's financial health and debt management strategies.