Cactus Inc (WHD)
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 | 1.38 | 1.68 | 1.70 | 1.76 | 1.76 | 1.45 | 1.55 | 1.64 | 1.57 | 2.01 | 2.07 | 2.08 | 1.65 | 1.66 | 2.14 | 1.57 | 1.48 | 1.48 | 1.50 | 1.57 |
Cactus Inc's solvency ratios, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have remained consistently low and stable over the forecast period from March 2020 to December 2024.
The debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, was at 0.00 for each period, indicating that the company has not relied on debt to fund its assets, reflecting a strong financial position with a low risk of insolvency.
Similarly, the debt-to-capital ratio and debt-to-equity ratio were also consistently at 0.00 throughout the forecast period, which further confirms the minimal reliance on debt in the capital structure of Cactus Inc. This suggests that the company has a conservative approach to financing, with a significant portion of capital being derived from equity.
The financial leverage ratio, which indicates the proportion of a company's assets that are financed by debt, ranged from 1.45 to 2.14, remaining relatively stable over time. While the ratio increased slightly in some periods, it remained at levels that are considered reasonable and manageable.
Overall, the solvency ratios of Cactus Inc demonstrate a healthy financial position with a low level of debt relative to assets and capital, indicating a strong ability to meet its financial obligations and weather economic challenges.
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 | 221.94 | 199.07 | 110.38 | 41.51 | 33.52 | 24.42 | 21.48 | 41.91 | 46.51 | 89.63 | 142.71 | 129.73 | 97.45 | 74.35 | 71.22 | 56.99 | 71.83 | 80.23 | 96.08 | 138.90 |
The interest coverage ratio measures a company's ability to meet its interest payment obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt. Analyzing Cactus Inc's interest coverage ratio over the past few years, we observe fluctuations in the ratio.
From March 31, 2020, to June 30, 2021, the interest coverage ratio declined steadily, indicating a potential decrease in Cactus Inc's ability to cover its interest expenses with its operating income. However, from June 30, 2021, to June 30, 2022, there was a significant improvement in the interest coverage ratio, suggesting an enhanced capacity to meet interest payments.
Subsequently, from June 30, 2022, to December 31, 2024, the interest coverage ratio experienced a significant increase, peaking at 221.94 on December 31, 2024. This surge suggests a considerable improvement in the company's ability to service its debt obligations with its operating income.
However, the interest coverage ratio decreased notably in the following quarters till March 31, 2024. This decline may indicate a potential strain on Cactus Inc's ability to cover its interest payments efficiently. It is essential for stakeholders to closely monitor the interest coverage ratio to assess the company's financial health and its ability to meet its debt obligations.