Ziff Davis Inc (ZD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.29 | 0.28 | 0.27 | 0.32 |
| Debt-to-capital ratio | 0.32 | 0.35 | 0.35 | 0.34 | 0.49 |
| Debt-to-equity ratio | 0.48 | 0.53 | 0.53 | 0.53 | 0.98 |
| Financial leverage ratio | 2.05 | 1.83 | 1.87 | 1.92 | 3.03 |
Based on the provided solvency ratios for Ziff Davis Inc, we can observe the following trends:
1. Debt-to-Assets Ratio:
- The debt-to-assets ratio has been relatively stable over the years, decreasing from 0.32 in 2020 to 0.23 in 2024. This indicates that Ziff Davis has been effectively managing its debt in relation to its total assets.
2. Debt-to-Capital Ratio:
- The debt-to-capital ratio also demonstrates a declining trend, decreasing from 0.49 in 2020 to 0.32 in 2024. This indicates that a decreasing portion of Ziff Davis' capital structure is financed by debt.
3. Debt-to-Equity Ratio:
- The debt-to-equity ratio shows a consistent decrease from 0.98 in 2020 to 0.48 in 2024, indicating a decreasing reliance on debt financing relative to shareholders' equity.
4. Financial Leverage Ratio:
- The financial leverage ratio decreased from 3.03 in 2020 to 1.87 in 2023, before increasing slightly to 2.05 in 2024. This implies that Ziff Davis has been reducing its financial leverage, although there was a slight uptick in 2024.
Overall, the solvency ratios of Ziff Davis Inc suggest that the company has been effectively managing its debt levels and capital structure over the years. The decreasing trend in most ratios indicates a stronger financial position and lower risk associated with debt financing. However, the slight increase in the financial leverage ratio in 2024 warrants closer monitoring to ensure sustainable financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.96 | 2.58 | 4.28 | 7.06 | 4.25 |
The interest coverage ratio of Ziff Davis Inc has shown varying trends over the years. In December 2020, the company's interest coverage was 4.25, indicating that it earned 4.25 times the interest expenses it had to pay. By December 2021, the interest coverage improved to 7.06, suggesting a stronger ability to meet interest payment obligations from operating income.
However, in December 2022, the interest coverage ratio dropped slightly to 4.28, potentially indicating a slight decrease in the company's ability to cover its interest expenses. The ratio decreased further to 2.58 by December 2023, signaling a significant decline in the company's ability to cover its interest obligations.
In December 2024, the interest coverage ratio slightly recovered to 3.96, but it still remained lower compared to the previous years. Overall, the fluctuating trend in Ziff Davis Inc's interest coverage ratios suggests varying levels of financial risk and the need for closer monitoring of its ability to meet interest payments from its operating earnings.