Willscot Mobile Mini Holdings Corp A (WSC)
Solvency ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 5.89 | 5.92 | 5.73 | 5.04 | 4.68 | 4.87 | 4.63 | 3.98 | 3.59 | 3.72 | 3.46 | 3.37 | 2.98 | 2.89 | 2.88 | 2.77 | 2.76 | 2.60 | 2.69 | 4.97 |
The analysis of Willscot Mobile Mini Holdings Corp A's solvency ratios over the given period reveals the following key observations:
1. Debt-to-Assets, Debt-to-Capital, and Debt-to-Equity Ratios:
- All three ratios are consistently reported as zero across the entire timeframe from June 30, 2020, through March 31, 2025.
- This indicates that the company has not recorded any debt, implying an absence of interest-bearing liabilities or leverage components within its capital structure during this period.
2. Implication of Zero Debt Ratios:
- The persistent zero values suggest the company's capital structure is entirely equity-funded, or alternatively, that debt information is either negligible or not reported.
- A debt-free status enhances the company's solvency profile, reducing financial risk associated with leverage, such as bankruptcy or insolvency concerns related to debt obligations.
3. Financial Leverage Ratio:
- The financial leverage ratio exhibits notable variation over time, starting at approximately 4.97 on June 30, 2020, and increasing to about 5.89 by March 31, 2025.
- Since the leverage ratio is calculated as total assets divided by total equity, and given that debt ratios are zero, this ratio likely reflects the company's total assets relative to its equity base.
- The increasing trend indicates that the company's total assets are growing faster than its equity, possibly due to retained earnings, asset revaluation, or other balance sheet changes, rather than through debt issuance.
4. Overall Solvency Profile:
- The combination of zero debt ratios with rising financial leverage suggests a markedly conservative capital structure, predominantly equity-based, with no reliance on debt to finance its operations.
- This scenario reduces the company's financial risk and enhances its solvency position, offering a buffer against financial distress during periods of volatility or downturns.
In conclusion, Willscot Mobile Mini Holdings Corp A demonstrates a robust solvency profile characterized by the absence of debt leverage throughout the observed period. The company's leverage appears to be driven solely by the growth of its total assets relative to equity, maintaining a conservative financial stance that favors long-term solvency and risk mitigation.
Coverage ratios
| Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.15 | 1.20 | 1.20 | 2.13 | 3.01 | 3.28 | 3.52 | 3.70 | 3.70 | 3.58 | 1.74 | 1.37 | 0.50 | -0.28 | 1.52 | 0.11 | 0.41 | 0.35 | -0.10 | 0.80 |
The interest coverage ratios of Willscot Mobile Mini Holdings Corp A demonstrate significant fluctuations over the analyzed period. Starting in mid-2020, the ratio was relatively low, recorded at 0.80 on June 30, 2020, indicating that earnings before interest and taxes (EBIT) were just below the level necessary to cover interest expenses, and subsequent months showed a decline, with the ratio dipping into negative territory at -0.10 on September 30, 2020. This negative coverage reflects periods where EBIT was insufficient to cover interest, raising concerns about short-term solvency and the firm's ability to meet interest obligations without additional financing or restructuring.
In late 2020, the ratio recovered slightly to 0.35 by December 31, 2020, and continued to improve modestly in 2021, reaching 0.41 on March 31, 2021, but again declined to 0.11 on June 30, 2021. A notable positive shift occurred on September 30, 2021, when the ratio surged to 1.52, indicating EBIT was more than sufficient to cover interest expenses during that period. However, this improvement was temporary, as the ratio dropped again to -0.28 at the end of 2021, underscoring persistent volatility and periods where EBIT was insufficient to meet interest payments.
Throughout 2022 and into 2023, the ratio showed a marked upward trajectory. It increased from 0.50 on March 31, 2022, to 1.37 on June 30, 2022, and further to 1.74 on September 30, 2022. The most notable improvement occurred by December 31, 2022, reaching a ratio of 3.58, indicating strong earnings relative to interest expenses. Similar positive momentum persisted in early 2023, with ratios of 3.70 on both March 31 and June 30, 2023, slightly declining to 3.52 on September 30, and further to 3.28 on December 31, 2023. This sustained improvement reflects substantial EBIT relative to interest obligations.
Looking forward into 2024 and the first quarter of 2025, the ratios indicate a decreasing trend. The interest coverage ratio decreased to 3.01 by March 31, 2024, then declined further to 2.13 on June 30, 2024, and continued down to 1.20 by September 30, 2024, where it remained unchanged at the end of that year. The ratio further tapered to 1.15 by March 31, 2025. These declines suggest a reduction in the EBIT margin available to cover interest expenses, possibly signaling increased financial strain or diminishing profitability.
In summary, Willscot Mobile Mini Holdings Corp A experienced periods of financial stress characterized by negative or near-zero interest coverage ratios, particularly in late 2020 and 2021. However, beginning around late 2021 through 2023, the company demonstrated substantial improvement, achieving ratios well above 1. indicating a healthier margin of EBIT to cover interest obligations. Yet, recent data indicates a moderate decline in coverage, signaling potential renewed concerns about the ability to comfortably meet interest expenses if current trends persist.