Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Income Statement
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Solvency Ratios (Summary)
Axon Enterprise Inc., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Debt Ratios
- The debt to equity ratio was only reported for 2022, standing at 0.53, indicating a moderate level of debt relative to equity. When including operating lease liabilities, this ratio showed a slight increase from 0.02 in 2019 and 2020, to 0.03 in 2021, then sharply rising to 0.57 in 2022. A similar pattern is observed for the debt to capital ratio, which increased to 0.35 in 2022 and 0.36 when including operating leases, after remaining stable around 0.02-0.03 in prior years. The debt to assets ratio followed suit, increasing to 0.24 and 0.25 respectively in 2022 after being near zero in earlier years.
- Financial Leverage
- Financial leverage was relatively stable between 2018 and 2021, ranging from 1.41 to 1.61, but showed a significant increase to 2.25 in 2022. This indicates that the company used more debt relative to its equity base in that year, signaling higher leverage.
- Interest Coverage Ratio
- The interest coverage ratio exhibited high volatility over the period. It started extremely high at 327.79 in 2018, dropped sharply to 46 in 2019, then turned negative in 2020 (-113.38) and further deteriorated dramatically in 2021 (-5048.11), indicating the company faced significant difficulties in covering interest expenses during those years. Notably, the ratio rebounded strongly in 2022, reaching 403.7, suggesting a substantial improvement in earnings relative to interest obligations.
- Fixed Charge Coverage Ratio
- Fixed charge coverage mirrored the pattern seen in interest coverage, though with generally lower values. It declined from 7.56 in 2018 to 1.44 in 2019 and dropped precipitously to 0.08 in 2020, becoming negative (-17.79) in 2021, before recovering robustly to 22.38 in 2022. This pattern further emphasizes the company's fluctuating ability to cover fixed charges over the review period, with significant strain around 2020-2021 and a sharp recovery afterward.
Debt Ratios
Coverage Ratios
Debt to Equity
Axon Enterprise Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, net | ||||||
| Total debt | ||||||
| Stockholders’ equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity1 | ||||||
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Equity, Sector | ||||||
| Capital Goods | ||||||
| Debt to Equity, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt figure is only available for the year ending December 31, 2022, reported at $673,967 thousand. No prior data is provided, preventing an analysis of debt trend over time.
- Stockholders’ Equity
- Stockholders' equity exhibits a consistent and significant upward trend across the five-year period. Starting from $467,324 thousand in 2018, equity increased annually, reaching $1,268,491 thousand by the end of 2022. This growth indicates strengthening financial stability and an expanding equity base over time.
- Debt to Equity Ratio
- The debt to equity ratio is only reported for the year ending 2022 at 0.53. This suggests that debt represents approximately 53% of equity at that point, reflecting a moderate leverage position. However, the absence of prior ratio data limits the ability to assess changes in leverage across earlier periods.
Debt to Equity (including Operating Lease Liability)
Axon Enterprise Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, net | ||||||
| Total debt | ||||||
| Current operating lease liabilities (classified in Other current liabilities) | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Stockholders’ equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | ||||||
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt displayed a relatively moderate increase from 2019 to 2021, rising from 10,609 thousand USD in 2019 to 26,979 thousand USD in 2021. However, a significant and sharp increase occurred in 2022, where total debt escalated dramatically to 717,467 thousand USD. This suggests a major change in the company's leverage or financing activities in the most recent year.
- Stockholders' equity
- Stockholders' equity showed consistent growth over the entire period. It increased each year from 467,324 thousand USD at the end of 2018 to 1,268,491 thousand USD by the end of 2022. This upward trend indicates expanding net assets and potentially improved retained earnings or capital contributions.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio remained very low and relatively stable between 2019 and 2021, ranging from 0.02 to 0.03. Notably, there was a sharp increase in 2022, with the ratio rising from 0.03 to 0.57. This change reflects the substantial increase in total debt relative to equity during the same period. Despite this increase, the ratio remains below 1, indicating that equity still exceeds debt, but leverage has notably intensified.
Debt to Capital
Axon Enterprise Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, net | ||||||
| Total debt | ||||||
| Stockholders’ equity | ||||||
| Total capital | ||||||
| Solvency Ratio | ||||||
| Debt to capital1 | ||||||
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Capital, Sector | ||||||
| Capital Goods | ||||||
| Debt to Capital, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total capital
- The total capital exhibited a consistent upward trend over the observed periods. Starting at approximately $467.3 million at the end of 2018, it increased to $543.5 million in 2019, followed by a significant jump to $976.3 million in 2020. This growth continued at a slower pace in 2021, reaching $1.05 billion, before almost doubling to $1.94 billion in 2022. This pattern indicates a substantial expansion in the company’s capital base, especially notable in the years 2020 and 2022.
- Total debt
- Information regarding total debt is only available for the year ending in 2022, recorded at approximately $674 million. The absence of prior data restricts the ability to evaluate trends in the company's leverage or debt accumulation over the earlier years.
- Debt to capital ratio
- The debt to capital ratio is provided solely for 2022, at 0.35. This ratio signifies that 35% of the total capital at the end of 2022 is comprised of debt. Without earlier period comparatives, it is not possible to assess whether the company’s financial leverage has increased or decreased over time.
- Overall insights
- There is clear evidence of substantial capital growth over the five-year period, which may indicate organizational scaling, increased investments, or capital infusion activities. However, due to the limited availability of debt and leverage data confined to the last year, a comprehensive assessment of the company’s financial risk profile or capital structure evolution remains constrained. The 2022 debt to capital ratio suggests a moderate reliance on debt financing relative to total capital at that point in time.
Debt to Capital (including Operating Lease Liability)
Axon Enterprise Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, net | ||||||
| Total debt | ||||||
| Current operating lease liabilities (classified in Other current liabilities) | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Stockholders’ equity | ||||||
| Total capital (including operating lease liability) | ||||||
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | ||||||
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt remained relatively low and stable between 2019 and 2021, with values around $10.6 million to $27.0 million. However, there was a significant and sharp increase in 2022, where the debt escalated dramatically to approximately $717.5 million.
- Total Capital (including operating lease liability)
- Total capital exhibited a consistent upward trend across the entire period. Starting from $467.3 million in 2018, the capital increased progressively each year, reaching $1.985 billion in 2022, indicating substantial growth in the company's financing base or asset size.
- Debt to Capital Ratio (including operating lease liability)
- This ratio was very low and stable from 2019 to 2021, ranging between 0.02 and 0.03, suggesting a conservative financial structure with minimal reliance on debt financing. In 2022, the ratio surged to 0.36, reflecting a marked increase in leverage and a shift toward a higher proportion of debt in the company's capital structure.
Debt to Assets
Axon Enterprise Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, net | ||||||
| Total debt | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets1 | ||||||
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Assets, Sector | ||||||
| Capital Goods | ||||||
| Debt to Assets, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- The total assets demonstrate a consistent and significant upward trend over the five-year period. Starting from approximately 720 million USD in 2018, the assets increased steadily each year, reaching nearly 2.85 billion USD by the end of 2022. The growth trajectory indicates robust asset accumulation and expansion of the company's resource base.
- Total debt
- Total debt data is only available for the year ending in 2022, where it amounts to approximately 674 million USD. Without prior years' data, it is not possible to assess the trend or changes in debt levels over time.
- Debt to assets ratio
- The debt to assets ratio is reported only for 2022, standing at 0.24. This ratio signifies that about 24% of the company's assets are financed through debt. Given the substantial asset base in 2022, this level of leverage appears moderate and suggests a balanced approach to debt financing relative to assets.
- Overall observations
- The available data portrays a company with strong asset growth over the examined period, reaching close to 3 billion USD in total assets by 2022. Although debt data is limited to a single point in time, the debt to assets ratio indicates moderate leverage at that point. The absence of earlier debt information limits the ability to conclude about changes in capital structure or risk profile over time.
Debt to Assets (including Operating Lease Liability)
Axon Enterprise Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Convertible notes, net | ||||||
| Total debt | ||||||
| Current operating lease liabilities (classified in Other current liabilities) | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | ||||||
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt remained relatively low from 2019 through 2021, starting at 10,609 thousand US dollars in 2019 and increasing moderately to 26,979 thousand US dollars by the end of 2021. However, there is a significant increase in 2022, with total debt rising sharply to 717,467 thousand US dollars, indicating a substantial increase in financial leverage or obligations during that year.
- Total Assets
- Total assets demonstrated a consistent upward trend over the five-year period. Beginning at 719,540 thousand US dollars in 2018, assets increased steadily each year to reach 2,851,894 thousand US dollars in 2022. This reflects significant growth in the asset base, more than tripling over the period, suggesting expansion of the company’s resources or investments.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio remained very low from 2019 through 2021, ranging between 0.01 and 0.02, indicating a conservative capital structure with minimal reliance on debt relative to assets. In 2022, the ratio increased markedly to 0.25, which corresponds with the large increase in total debt. This shift suggests a change in financial strategy or conditions, resulting in a greater proportion of debt financing relative to assets.
Financial Leverage
Axon Enterprise Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | ||||||
| Stockholders’ equity | ||||||
| Solvency Ratio | ||||||
| Financial leverage1 | ||||||
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Financial Leverage, Sector | ||||||
| Capital Goods | ||||||
| Financial Leverage, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- The total assets exhibited a consistent upward trend over the five-year period. Starting at approximately 719.5 million US dollars at the end of 2018, total assets grew steadily each year, reaching nearly 2.85 billion US dollars by the end of 2022. The most significant increases occurred between 2019 and 2020, and again from 2021 to 2022, indicating accelerated asset accumulation in the latter years.
- Stockholders’ equity
- Stockholders’ equity also followed a positive growth trajectory throughout the period under review. Beginning at around 467.3 million US dollars at the end of 2018, it increased steadily to 1.27 billion US dollars by the end of 2022. Notably, equity saw substantial growth in 2020, aligning with the increase in total assets. However, the rate of equity growth appears more gradual from 2021 onward compared to the jump observed in 2020.
- Financial leverage
- The financial leverage ratio fluctuated during the period. It remained relatively stable between 1.54 and 1.56 in 2018 and 2019, then decreased to 1.41 in 2020, suggesting a reduction in reliance on debt or increases in equity during that year. Subsequently, financial leverage rose to 1.61 in 2021 and sharply increased to 2.25 by the end of 2022, indicating a notable increase in leverage, with the company potentially assuming greater debt relative to equity in the most recent year.
Interest Coverage
Axon Enterprise Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Solvency Ratio | ||||||
| Interest coverage1 | ||||||
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Interest Coverage, Sector | ||||||
| Capital Goods | ||||||
| Interest Coverage, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
- Earnings Before Interest and Tax (EBIT)
- The EBIT values exhibit significant volatility over the analyzed period. Initially, EBIT was positive and relatively strong at approximately 28.19 million USD at the end of 2018. In 2019, a steep decline occurred, with EBIT falling to around 2.12 million USD. The downward trend continued into 2020, where EBIT became negative, registering a loss of roughly 6.24 million USD. This negative trend drastically worsened in 2021, with EBIT plunging to a substantial loss of about 141.35 million USD. However, in 2022, the company experienced a pronounced recovery, with EBIT rising dramatically to nearly 197.01 million USD, representing a substantial turnaround.
- Interest Expense
- Interest expense remained relatively low and stable from 2018 to 2021, fluctuating modestly between approximately 28 thousand USD and 86 thousand USD. However, in 2022, a sharp increase in interest expense is observed, rising to approximately 488 thousand USD, more than an eightfold increase compared to the prior year.
- Interest Coverage Ratio
- The interest coverage ratio demonstrated a pattern corresponding to fluctuations in EBIT. Beginning with a very high ratio of approximately 327.79 in 2018, it fell dramatically to about 46 in 2019. In 2020 and 2021, the ratio became negative, reflecting negative EBIT values, with a particularly extreme negative value of around -5048.11 in 2021, indicating substantial difficulties in covering interest expenses. In 2022, the ratio rebounded strongly to about 403.7, surpassing the initial 2018 level and indicating robust earnings relative to interest obligations.
Fixed Charge Coverage
Axon Enterprise Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Add: Operating lease expense | ||||||
| Earnings before fixed charges and tax | ||||||
| Interest expense | ||||||
| Operating lease expense | ||||||
| Fixed charges | ||||||
| Solvency Ratio | ||||||
| Fixed charge coverage1 | ||||||
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | ||||||
| Fixed Charge Coverage, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax demonstrated a highly volatile pattern over the analyzed periods. Initially, in 2018, earnings were positive and relatively stable at 32,390 thousand US dollars. However, a significant decline occurred in 2019 and 2020, dropping drastically to 6,743 and then to 521 thousand US dollars, respectively. The trend took a markedly negative turn in 2021, with earnings falling to negative 133,852 thousand US dollars, indicating considerable operational or financial challenges. This trend reversed sharply by 2022, with the figure rebounding to a robust positive value of 205,709 thousand US dollars, suggesting a substantial recovery or one-time positive occurrence in that year.
- Fixed charges
- Fixed charges showed a gradual and steady increase throughout the period. Starting at 4,286 thousand US dollars in 2018, they rose incrementally each year to reach 4,673 in 2019, 6,812 in 2020, 7,523 in 2021, and finally 9,191 thousand US dollars in 2022. The consistent increase suggests higher financing costs or lease obligations over time.
- Fixed charge coverage ratio
- The fixed charge coverage ratio exhibited significant fluctuations reflecting the volatile earnings and increasing fixed charges. The ratio was strong in 2018 at 7.56, indicating healthy coverage of fixed charges by earnings. It plummeted to 1.44 in 2019 and dramatically further to 0.08 in 2020, suggesting minimal or insufficient earnings relative to fixed charges. The ratio turned negative in 2021 (-17.79) due to the negative earnings, indicating an inability to cover fixed charges during that year. In 2022, the coverage ratio rebounded remarkably to 22.38, reflecting the sharp recovery in earnings and the company’s improved capacity to meet fixed obligations.