Cactus Inc (WHD)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.02 | 0.07 | 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 | 0.04 | 0.13 | 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 | 0.04 | 0.15 | 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 | 1.76 | 1.76 | 1.78 | 1.94 | 2.06 | 1.96 | 2.01 | 2.07 | 2.08 | 2.10 | 2.11 | 2.14 | 2.16 | 2.31 | 2.31 | 2.37 | 2.48 | 2.55 | 2.60 | 2.71 |
Cactus Inc's solvency ratios have shown a consistent pattern over the past few quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have remained at very low levels, indicating that the company has minimal debt relative to its total assets, capital, and equity. This suggests a conservative capital structure and lower financial risk.
However, the financial leverage ratio has exhibited an increasing trend, starting from 1.76 at the end of 2020 and reaching 2.71 by the end of 2019. This suggests that the company is relying more on debt financing to support its operations and growth. A higher financial leverage ratio is typically associated with higher financial risk, as it indicates a greater proportion of debt in the company's capital structure.
Overall, while Cactus Inc has maintained low debt levels relative to various measures of its financial resources, the increasing trend in the financial leverage ratio warrants monitoring for potential implications on the company's financial health and risk profile.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 139.97 | 142.53 | 151.64 | 135.07 | 191.59 | 161.65 |
Interest coverage is a financial ratio that indicates a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio signifies a better ability to cover interest obligations.
Based on the available data for Cactus Inc over the past quarters, the interest coverage ratio has shown a generally strong and improving trend. The interest coverage ratio for the most recent quarters (Mar 31, 2020 to Mar 31, 2022) ranged from 135.07 to 191.59, indicating a robust ability to cover interest expenses comfortably.
The interest coverage ratio values for the earlier quarters are not provided in the table, making it difficult to discern the complete historical trend. However, the consistent high values for the recent quarters suggest that Cactus Inc has been effectively managing its interest expenses in relation to its earnings.
Overall, the strong interest coverage ratios observed in the disclosed quarters indicate that Cactus Inc has a healthy financial position and a good ability to meet its interest obligations. It is essential for investors and stakeholders to continue monitoring this ratio to ensure the company's ongoing ability to service its debt.