Cactus Inc (WHD)
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 | 1.62 | 1.76 | 1.57 | 1.65 | 1.48 |
The solvency ratios of Cactus Inc indicate a strong financial position in terms of leverage and debt management.
1. Debt-to-assets ratio: This ratio remained consistently at 0.00 across the years 2020 to 2024, indicating that Cactus Inc has not utilized debt financing to acquire its assets. This suggests a low-risk approach to financing its operations and investments.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio was also consistently at 0.00 over the same period. This indicates that Cactus Inc has not relied on debt to fund its capital structure, which is a positive sign for investors and creditors.
3. Debt-to-equity ratio: The debt-to-equity ratio also remained at 0.00 throughout the years analyzed. This implies that the company's capital is mainly funded by equity rather than debt, reflecting a conservative financial strategy that lowers the risk of financial distress.
4. Financial leverage ratio: The financial leverage ratio fluctuated slightly between 1.48 and 1.76 from 2020 to 2024. Despite the fluctuations, the ratio generally remained relatively stable, indicating that the company has maintained a balanced mix of debt and equity in its capital structure.
Overall, based on these solvency ratios, Cactus Inc demonstrates a conservative approach to managing its debt levels and leverage, which suggests a strong financial position and sound risk management practices.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 132.61 | 26.63 | 172.29 | 78.65 | 63.80 |
The interest coverage ratio for Cactus Inc reflects the company's ability to meet its interest obligations from its operating income.
- As of December 31, 2020, the interest coverage ratio stood at 63.80, indicating that the company earned 63.80 times the amount of interest expense incurred during that period. This suggests a healthy ability to cover interest payments.
- By December 31, 2021, the interest coverage ratio improved to 78.65, showing a further increase in the company's ability to meet interest obligations comfortably.
- However, there was a significant surge in the interest coverage ratio by December 31, 2022, reaching 172.29. This sharp increase indicates a substantial increase in operating income relative to interest expenses, highlighting a strong financial position.
- The interest coverage ratio then dropped significantly by December 31, 2023, to 26.63. This decline suggests a potential concern as the company may have faced challenges in generating sufficient operating income to cover interest payments.
- By December 31, 2024, the interest coverage ratio improved again to 132.61, indicating a recovery in the company's ability to meet interest obligations.
Overall, fluctuations in the interest coverage ratio over the years suggest varying levels of financial health and operational efficiency for Cactus Inc. It is crucial for the company to maintain a sustainable interest coverage ratio to ensure financial stability and meet debt obligations effectively.