Werner Enterprises Inc (WERN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2.10 | 2.16 | 2.13 | 2.03 | 2.07 | 2.11 | 2.07 | 2.12 | 2.15 | 2.06 | 2.12 | 1.97 | 1.95 | 1.90 | 1.84 | 1.82 | 1.80 | 1.81 | 1.83 | 1.90 |
Werner Enterprises Inc has shown consistent strong solvency ratios over the analyzed period, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00%. This signifies that the company has no debt relative to its assets, capital, and equity, indicating a favorable position in terms of financial stability and risk management.
The financial leverage ratio of Werner Enterprises Inc has been gradually increasing from 1.80 in December 2020 to 2.10 in December 2024. This increase suggests a rising level of financial risk and leverage, although it remains relatively low compared to many other companies.
Overall, Werner Enterprises Inc's solvency ratios reflect a solid financial position with low leverage and minimal debt levels, indicating a strong ability to meet its financial obligations and potential challenges in the future.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.88 | 2.24 | 2.71 | 3.34 | 4.06 | 5.70 | 8.12 | 11.95 | 21.66 | 35.58 | 49.43 | 68.44 | 73.07 | 94.13 | 98.16 | 72.36 | 53.58 | 35.64 | 26.45 | 25.61 |
Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio implies a better ability to meet interest obligations.
For Werner Enterprises Inc, the interest coverage ratio has shown a generally increasing trend from March 31, 2020, to June 30, 2021, peaking at 98.16, indicating a strong ability to cover interest expenses over this period. However, starting from September 30, 2021, the interest coverage ratio began to decline. This decline continued through December 31, 2024, reaching a low of 1.88.
The significant drop in the interest coverage ratio from June 30, 2021, to December 31, 2024, implies that Werner Enterprises Inc may be facing challenges in generating enough earnings to cover its interest expenses. A declining interest coverage ratio can be a concern for investors and creditors as it suggests a higher risk of default on debt obligations.
It is essential for investors and stakeholders to monitor Werner Enterprises' interest coverage ratio closely, as a sustained low ratio may indicate financial distress and the potential need for restructuring or refinancing of debt.