Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
Activision Blizzard Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Debt to Equity Ratio
- The debt to equity ratio shows a consistent downward trend over the analyzed period. Starting at 0.45 in the first quarter of 2018, it steadily declines to 0.17 by the second quarter of 2023. This indicates a gradual reduction in reliance on debt relative to equity, reflecting a strengthening equity base or a deliberate reduction in debt levels.
- Debt to Capital Ratio
- Similar to the debt to equity ratio, the debt to capital ratio declines over time. Beginning at 0.31 in early 2018, the ratio decreases steadily to 0.15 in mid-2023. This trend suggests improved capital structure management with less proportionate debt financing in the company’s capital mix.
- Debt to Assets Ratio
- This ratio decreases from 0.24 in the first quarter of 2018 to 0.13 by the second quarter of 2023. The reduction points to a decreasing proportion of assets financed through debt, implying a stronger asset base or less leveraged asset acquisition strategy.
- Financial Leverage Ratio
- The financial leverage ratio declines moderately from 1.87 in early 2018 to around 1.37 in the second quarter of 2023. After some fluctuations, the general decrease suggests less dependency on debt-related financial leverage, which could indicate lower financial risk.
- Interest Coverage Ratio
- Interest coverage data is only available from late 2022 onward. Starting at a very high figure of 107.07, it declines to 24.86 by mid-2023, though it remains at a strong level. Despite the decrease, the company maintains a comfortable buffer to cover its interest expenses, indicating good earnings relative to debt servicing costs.
Debt Ratios
Coverage Ratios
Debt to Equity
Activision Blizzard Inc., debt to equity calculation (quarterly data)
| 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 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, net | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's capital structure over the observed quarters.
- Total Debt
- The total debt remained relatively stable until mid-2019, fluctuating slightly around 2,670 to 2,675 million US dollars. Beginning in the third quarter of 2020, there was a marked increase in total debt, rising to 3,604 million US dollars, which then plateaued and remained just above 3,600 million US dollars for the subsequent periods through mid-2023.
- Shareholders’ Equity
- Shareholders’ equity demonstrated a consistent upward trend throughout the entire period. Starting at 9,819 million US dollars in the first quarter of 2018, equity increased almost steadily every quarter, reaching approximately 20,793 million US dollars by mid-2023, nearly doubling over the five-and-a-half-year span. This growth reflects a strengthening equity base and potentially retained earnings or capital injections.
- Debt to Equity Ratio
- The ratio of debt to equity showed a steady decline over the period. Beginning at 0.45 in early 2018, it progressively decreased, reflecting the relative increase in shareholders’ equity compared to debt levels. The ratio dropped to approximately 0.17 by mid-2023, suggesting improved financial leverage and a lower risk profile in terms of indebtedness relative to equity.
Overall, the data indicates that the company has managed to grow its equity base significantly while keeping its debt levels under control with a moderate rise in absolute terms only after 2020. The declining debt-to-equity ratio underscores improved financial stability and suggests a conservative approach to leveraging. Such trends may positively influence the company's creditworthiness and investor confidence.
Debt to Capital
Activision Blizzard Inc., debt to capital calculation (quarterly data)
| 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 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, net | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends regarding the company's capital structure over the examined periods.
- Total Debt
- The total debt experienced a significant decrease from $4,392 million in March 2018 to $2,670 million by September 2018, maintaining a relatively stable level around $2,670 million through June 2020. Subsequently, there is an observed increase starting in September 2020, rising to approximately $3,612 million by June 2023. This reflects a shift from a period of debt reduction and stability to gradual debt accumulation over the last few years.
- Total Capital
- Total capital shows an overall increasing trend throughout the timeframe. It fluctuated somewhat between $13,329 million and $15,480 million from September 2018 to December 2019, then experienced consistent growth reaching $24,405 million by June 2023. This steady increase indicates expansion or reinvestment activities contributing to a larger capital base.
- Debt to Capital Ratio
- The ratio declined sharply from 0.31 in March 2018 to 0.16 in June 2020, coinciding with the reduction in total debt and incremental capital growth. Following this, although debt increased after mid-2020, the ratio remained relatively stable, fluctuating between 0.15 and 0.20, and ultimately declining to 0.15 by June 2023. This suggests that the growth in total capital has generally outpaced the increase in debt, maintaining a conservative leverage profile.
In summary, while total debt decreased substantially early in the period, it began to rise moderately from late 2020 onward. Concurrently, total capital expanded steadily, resulting in a lowering debt to capital ratio over time. This overall pattern reflects a strengthening capital structure with controlled leverage, potentially indicative of strategic financial management aimed at balancing growth and risk.
Debt to Assets
Activision Blizzard Inc., debt to assets calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, net | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt level remained relatively stable from March 2018 through June 2020, fluctuating slightly around the 2,600 to 4,400 million US$ range. A notable increase occurred between June and September 2020, where total debt rose from 2,676 million US$ to 3,604 million US$, after which it stabilized around 3,600 million US$ through mid-2023. This suggests a marked increase in borrowing or debt issuance in late 2020, followed by maintenance of this higher debt level.
- Total Assets
- The total assets showed a general upward trend over the entire period. Starting at 18,397 million US$ in March 2018, assets declined somewhat until September 2018 but then increased steadily, reaching a peak of 28,518 million US$ by June 2023. This reflects an overall growth in asset base, with intermittent more rapid expansions notably from 2020 onwards.
- Debt to Assets Ratio
- The debt to assets ratio exhibited a downward trend from 0.24 in early 2018 to approximately 0.13 by mid-2023. This decline reflects the faster growth of total assets relative to total debt. Although there was a slight uptick in the ratio around late 2020 corresponding with the increase in debt, the ratio resumed its general decline afterwards, indicating improving leverage or a stronger asset base relative to debt obligations over time.
Financial Leverage
Activision Blizzard Inc., financial leverage calculation (quarterly data)
| 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 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's asset base, equity, and financial leverage over the observed period.
- Total Assets
- Total assets displayed some fluctuations from early 2018 through mid-2019, initially decreasing from approximately $18.4 billion to about $16.7 billion before gradually increasing again towards the end of 2019. From 2020 onward, assets followed a generally upward trajectory, rising from around $19.6 billion at the start of 2020 to approximately $28.5 billion by mid-2023. This reflects a steady asset base growth, indicating possible expansions or acquisitions supporting the company’s operational scale.
- Shareholders’ Equity
- Shareholders’ equity consistently increased throughout the entire period. Starting near $9.8 billion in early 2018, it rose steadily each quarter, reaching roughly $20.8 billion by mid-2023. The consistent increase in equity signifies strengthening financial health and accumulated retained earnings or capital injections over time, contributing to an enhanced equity position relative to liabilities.
- Financial Leverage
- The financial leverage ratio, which measures the proportion of total assets funded by shareholders' equity, showed a declining trend from 1.87 in the first quarter of 2018 to a range of approximately 1.36-1.42 in subsequent years. After mid-2019, the ratio stabilized around this lower range with minor fluctuations. This decline suggests reduced reliance on debt financing and a more conservative capital structure with increased equity financing relative to total assets.
Overall, the data depict a company that has grown its asset base substantially while simultaneously increasing shareholders’ equity at a steady pace. The reduction and stabilization of financial leverage ratios imply an improving balance sheet with a lower risk profile, reflecting careful management of debt and equity components.
Interest Coverage
Activision Blizzard Inc., interest coverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||
| Add: Interest expense from debt | |||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Charter Communications Inc. | |||||||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Interest coverage
= (EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022)
÷ (Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values exhibit considerable quarterly fluctuations across the observed period. Initially, from March 2018 to December 2018, EBIT varied significantly, with a low of 212 million USD in September 2018 and a peak of 690 million USD in December 2018. The following year, 2019, showed a general decline in quarters two and three to 370 million and 249 million USD respectively, before rebounding to 447 million USD in the fourth quarter. In 2020, EBIT improved substantially, ranging from 563 million USD in the first quarter to a peak of 727 million USD in the third quarter, but decreased to 722 million USD by year-end. During 2021, EBIT values increased notably, reaching the highest point of 1,002 million USD in December. However, beginning 2022, EBIT declined steadily to reach 348 million USD in the third quarter, followed by a recovery toward year-end. In the first two quarters of 2023, EBIT showed volatility with 512 million USD in March and peaking again at 922 million USD in June.
- Interest expense from debt
- Interest expense data is largely absent across most quarters until mid-2022, when it consistently recorded values of 27 million USD in multiple quarters, except for a spike to 54 million USD in the fourth quarter of 2022. The data indicates that interest payments became more evident or were reported more consistently starting in 2022.
- Interest coverage ratio
- Interest coverage ratios, calculated as EBIT divided by interest expense, are only present from the third quarter of 2022 onward. The ratios begin at a very high value of 107.07, suggesting strong ability to cover interest expenses at that time. Subsequent quarters show a decreasing trend in coverage ratio, dipping to 17.15 at the end of 2022 before recovering moderately to 24.86 by the second quarter of 2023. This pattern implies that while the company maintained a satisfactory capacity to service interest, the margin narrowed during late 2022.
- Overall observations
- The financial data reveals cyclical patterns in EBIT, with peaks frequently occurring near year-ends, particularly pronounced in 2018, 2020, and 2021. Interest expense trends suggest new or increased debt obligations starting in 2022, concurrent with a lower interest coverage ratio, indicating increased leverage or financial costs. Despite this, the company’s ability to service its interest obligations remains robust, albeit with some volatility. The spike in interest expense in the fourth quarter of 2022 and corresponding dip in coverage ratio warrants monitoring for potential impacts on financial flexibility.