Werner Enterprises Inc (WERN)

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	0.20	0.21	0.20	0.22	0.22	0.20	0.15	0.16	0.16	0.14	0.12	0.08	0.08	0.08	0.08	0.08	0.10	0.13	0.18	0.02
Debt-to-capital ratio	0.30	0.31	0.30	0.32	0.32	0.29	0.25	0.24	0.24	0.21	0.19	0.12	0.13	0.13	0.13	0.14	0.17	0.21	0.27	0.04
Debt-to-equity ratio	0.42	0.45	0.42	0.47	0.48	0.41	0.33	0.31	0.32	0.26	0.23	0.14	0.15	0.15	0.15	0.16	0.20	0.26	0.38	0.04
Financial leverage ratio	2.07	2.11	2.07	2.12	2.15	2.06	2.12	1.97	1.96	1.90	1.84	1.82	1.80	1.81	1.83	1.90	1.93	2.03	2.06	1.66

Werner Enterprises, Inc. generally maintained a stable solvency position over the past eight quarters based on the provided solvency ratios. The debt-to-assets ratio fluctuated within the range of 0.16 to 0.22 during this period, indicating that the company's total debt relative to its total assets remained relatively consistent.

The debt-to-capital ratio followed a similar trend, reflecting the proportion of the company's debt in relation to its total capital. Werner Enterprises, Inc. showed a relatively stable debt-to-capital ratio between 0.24 and 0.32, suggesting a consistent level of financial leverage over the quarters analyzed.

Analyzing the debt-to-equity ratio, which measures the proportion of debt to equity on the company's balance sheet, Werner Enterprises, Inc. demonstrated a slightly increasing trend in debt relative to equity, with the ratio rising from 0.31 to 0.47 over the study period. This indicates a gradual increase in external financing relative to shareholder funds.

The financial leverage ratio, which indicates the extent to which a company is using debt to finance its operations, also showed some variability, ranging from 1.92 to 2.09. This suggests fluctuations in the company's reliance on debt to generate earnings and fund growth.

Overall, while the solvency ratios of Werner Enterprises, Inc. remained relatively stable over the quarters examined, the increasing trend in the debt-to-equity ratio signals a potential shift towards higher reliance on external funding sources for the company's operations.

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	5.41	7.47	10.72	17.17	28.09	45.76	58.67	71.24	78.68	96.53	101.32	75.10	54.31	36.82	28.03	27.86	33.38	42.87	61.79	78.09

Werner Enterprises, Inc.'s interest coverage ratio has exhibited a consistent downward trend over the past eight quarters, declining from 84.16 in Q1 2022 to 6.57 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its earnings has weakened significantly. The substantial decrease in the interest coverage ratio suggests potential financial distress or increased risk of default on debt obligations. It is crucial for Werner Enterprises to closely monitor and address this declining trend to ensure a healthy and sustainable financial position in the future.