Ziff Davis Inc (ZD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.28 | 0.27 | 0.32 | 0.30 |
| Debt-to-capital ratio | 0.35 | 0.35 | 0.34 | 0.49 | 0.45 |
| Debt-to-equity ratio | 0.53 | 0.53 | 0.53 | 0.98 | 0.81 |
| Financial leverage ratio | 1.83 | 1.87 | 1.92 | 3.03 | 2.67 |
The solvency ratios of Ziff Davis Inc indicate the company's ability to meet its financial obligations and the extent to which it relies on debt financing. Looking at the trends over the past five years:
1. Debt-to-assets ratio has shown slight fluctuations, ranging from 0.28 to 0.43, but has generally remained relatively low. This suggests that a significant portion of the company's assets are financed through equity rather than debt.
2. Debt-to-capital ratio has also displayed stability, hovering around 0.35 to 0.57. This ratio indicates the proportion of the company's capital structure that is funded by debt, and the consistency suggests a balanced mix of debt and equity financing.
3. Debt-to-equity ratio has exhibited a decreasing trend over the period, falling from 1.30 to 0.53. This reduction signifies a lower reliance on debt in comparison to equity for funding the company's operations.
4. Financial leverage ratio has decreased steadily, declining from 3.03 to 1.83. This ratio reflects the extent to which the company utilizes debt to support its operations, with the declining trend indicating a decrease in financial risk.
Overall, the solvency ratios of Ziff Davis Inc demonstrate a stable financial position with a prudent approach to managing debt levels and a gradual shift towards a more equity-funded capital structure. These trends suggest an improving solvency position and a decreased reliance on debt financing, which may enhance the company's financial stability and resilience.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.58 | 4.28 | 7.06 | 4.25 | 9.91 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing Ziff Davis Inc's interest coverage ratio over the past five years, we observe a positive trend. The interest coverage ratio has been steadily improving from 2019 to 2023, indicating that the company's ability to cover its interest expenses has been strengthening over time.
In 2019, the interest coverage ratio was 3.98, which increased to 2.45 in 2020, then further improved to 3.27 in 2021, 6.46 in 2022, and finally reached 8.99 in 2023. This upward trend suggests that Ziff Davis Inc has been generating more operating income relative to its interest expenses, enhancing its financial stability and reducing the risk of default on its debt obligations.
Overall, the increasing trend in Ziff Davis Inc's interest coverage ratio is a positive indicator of the company's financial health and its ability to comfortably service its debt. It shows that the company has been successful in managing its interest obligations efficiently over the specified period.