Fidelity National Information Services Inc. (NYSE:FIS)

Debt to Equity Ratio

The debt to equity ratio displayed moderate fluctuations over the analyzed periods. From March 2018 through March 2019, the ratio ranged between 0.85 and 0.93, indicating a relatively stable leverage position. A notable spike occurred in June 2019, reaching 1.83, before sharply declining to around 0.41 by September 2019, where it remained steady through December 2021. Beginning in 2022, the ratio showed a slight upward trend, increasing to 0.74 by March 2023. This suggests a period of increased leverage early in 2019, followed by a sustained reduction in debt reliance, with a moderate increase again in 2023.

Debt to Capital Ratio

The debt to capital ratio largely followed a pattern similar to the debt to equity ratio. It remained consistent near 0.46–0.48 during early 2018 to March 2019, jumped to 0.65 in June 2019, and then sharply dropped to approximately 0.29 from September 2019 through to December 2021. After a stable period, a moderate increase occurred in 2023, reaching around 0.42 by March. This indicates capital structure adjustments primarily occurring in mid-2019, with subsequent stabilization and a recent rise in debt proportion relative to total capital.

Debt to Assets Ratio

The debt to assets ratio also exhibited a peak in June 2019 at 0.56, following a steady range near 0.37 to 0.38 for the period prior. This ratio then dropped to around 0.24 from late 2019 through 2021, maintaining a very stable trend. Minor increases appeared in 2022 and 2023, rising to approximately 0.33 by the last reported date. The pattern suggests a temporary increase in debt load relative to total assets in mid-2019, with subsequent deleveraging and later slight increases in leverage levels.

Financial Leverage Ratio

The financial leverage ratio demonstrated higher variability among the metrics. Initially stable near 2.3 in early 2018 and early 2019, it surged to 3.29 in June 2019 and dropped markedly to about 1.7 from September 2019 through late 2021. This ratio showed a modest upward adjustment during 2022 and early 2023, ultimately climbing back above 2.2 by March 2023. This trend evidences significant changes in the company's use of debt and equity financing throughout the period, with a marked deleveraging after mid-2019 followed by a moderate increase in leverage in the most recent periods.

Total Debt

The total debt remained relatively stable from March 2018 through March 2019, fluctuating around the 9,000 million US dollar mark. A significant increase occurred in June 2019, when total debt nearly doubled to over 18,000 million US dollars, maintaining an elevated level through the end of 2019. From 2020 through 2021, debt levels stabilized again around 19,000 to 20,000 million US dollars. In 2022, total debt showed a gradual declining trend, dropping below 19,000 million in the third quarter, but increased again toward the end of 2022 and early 2023, approaching previous peaks at just above 20,000 million.

Total FIS Stockholders’ Equity

Total stockholders’ equity started around 10,400 million US dollars in early 2018 and showed a slight decline through early 2019, decreasing to just under 9,900 million US dollars. In mid-2019, a dramatic one-time increase occurred, with equity rising sharply to nearly 49,200 million US dollars, maintaining this elevated plateau through 2020. However, from 2021 onwards, equity steadily declined, falling from just above 48,000 million US dollars in early 2021 to around 27,000 million by March 2023, marking a significant decline in equity over this period.

Debt to Equity Ratio

The debt to equity ratio was relatively low and steady, around 0.85 to 0.9, from early 2018 to early 2019, indicating balanced leverage. In mid-2019, the ratio spiked considerably to 1.83, reflecting the sharp rise in debt and concurrent equity increase. Immediately following this spike, the ratio dropped sharply to around 0.4 by late 2019 and remained stable throughout 2020 and 2021. Starting in 2022, the ratio began to rise again, increasing from around 0.41 to approximately 0.74 by early 2023, indicating a gradual increase in leverage due to declining equity and fluctuating debt levels.

Overall Analysis

The data highlights two major inflection points: the substantial increase in equity and debt in mid-2019, and a noticeable subsequent decline in equity from 2021 onward. The mid-2019 changes suggest a significant corporate action, such as a major acquisition or restructuring, which increased both debt and equity substantially. Post-2019, while debt levels stabilized, the decline in equity has led to increasing leverage, especially noticeable in 2022 and early 2023. This rising leverage could indicate increased financial risk or strategic funding choices amid changing business conditions.

Total Debt

The total debt levels show a general increase from the beginning of the period in March 2018 through to March 2019, rising modestly from approximately $9,076 million to about $9,215 million. There is a pronounced spike in debt during the middle of 2019, particularly in June and September, where debt nearly doubles, reaching figures above $18,000 million and peaking around $20,193 million in September 2019. Following this spike, the total debt stabilizes, fluctuating slightly but generally remaining in the $19,000 to $20,000 million range through to March 2023. A mild decline is noticed toward the end of the period, with debt levels decreasing to about $20,012 million by March 2023.

Total Capital

Total capital exhibits a relatively stable trend in the first year, hovering around $19,000 million. A sharp increase occurs in mid-2019, jumping to approximately $28,227 million in June 2019, which coincides with the surge in total debt. This is followed by another substantial and sudden increase to nearly $69,000 million in September 2019, after which total capital remains relatively steady in the $67,000 to $69,000 million range for about two years. Starting in early 2022, total capital gradually declines, dropping significantly by March 2023 to approximately $47,109 million, well below prior peak levels.

Debt to Capital Ratio

The debt to capital ratio initially remains steady at around 0.46 to 0.48 up to the first quarter of 2019. There is a notable spike to 0.65 in June 2019, aligning with the increase in debt but before the jump in total capital. This ratio then sharply decreases to about 0.29 and remains consistently low through to the end of 2021, indicating a lower proportion of debt financing relative to total capital during this period. In 2022, the ratio remains stable around 0.29, but in the final quarter reported, there is a marked increase to around 0.43 to 0.42 by March 2023, reflecting the reduction in total capital combined with sustained debt levels.

Overall Analysis

The data reveals a period of significant capital restructuring starting mid-2019, indicated by large increases in both total debt and total capital. This change abruptly shifts the leverage profile, as shown by the spike and subsequent decline in the debt to capital ratio. The relatively low and stable ratio from late 2019 through 2021 suggests a period of conservative leverage management despite elevated capital levels. However, the notable increase in the ratio in early 2023 suggests a resurgence in leverage pressure, likely driven by the substantial reduction in total capital not matched by an equivalent decline in debt. This trend could imply increased financial risk and potential impacts on the company’s capital structure strategy going forward.

Total Debt

The total debt levels show a generally stable trend from March 2018 through March 2019, fluctuating slightly between approximately $8.9 billion and $9.2 billion. A significant increase occurs in June 2019, with debt levels rising sharply to over $18 billion, peaking near $20.2 billion by September 2019. This elevated debt level remains roughly stable through December 2020. From early 2021 onward, total debt slightly decreases and remains in the range of approximately $19.4 billion to $20.3 billion, with a minor decline observed in the first quarter of 2023 to about $20.0 billion.

Total Assets

Total assets demonstrate a moderate increase from around $23.7 billion in March 2018 to a peak of approximately $83.8 billion in September and December 2019, indicating a substantial rise within this period. This sharp asset growth coincides with the surge in total debt observed during the same timeframe. Post-December 2019, total assets stabilize above $82 billion throughout 2020 and early 2021, then show a gradual declining trend from mid-2021 onwards. By March 2023, total assets have decreased materially to about $61.1 billion, which represents a significant reduction compared to the peak levels.

Debt to Assets Ratio

The debt to assets ratio starts consistently near 0.37 to 0.38 from March 2018 through March 2019, reflecting a relatively stable capital structure. During the mid to late 2019 period, the ratio drops substantially to around 0.24, indicating an improvement in asset coverage relative to debt. This lower ratio remains stable through 2020 and into early 2022, reflecting a period of reduced leverage relative to assets despite elevated absolute debt levels. However, from March 2022 onward, the ratio increases sharply, reaching approximately 0.33 by the first quarter of 2023. This rise in leverage ratio is attributable to a decrease in total assets combined with relatively stable debt levels, signaling increased financial leverage and potential risk.

The financial data reveals notable fluctuations in total assets, stockholders’ equity, and financial leverage over the observed periods.

Total Assets

Total assets demonstrated a relative stability around the range of approximately 23,600 to 24,000 million USD from early 2018 through the first quarter of 2019. Starting in the second quarter of 2019, a significant increase occurred, peaking sharply at over 83,700 million USD in the third and fourth quarters of 2019. This spike appears anomalous compared to previous and subsequent quarters. Following this peak, total assets declined gradually yet remained elevated compared to pre-2019 levels, with figures fluctuating from about 82,300 million USD down to approximately 61,000 million USD by the first quarter of 2023. The most recent data point shows a considerable decrease in total assets, dropping to near the lower end of the range observed in recent years.

Total FIS Stockholders’ Equity

Stockholders’ equity mirrored some of the trends seen in total assets but with less volatility. The equity remained relatively flat between 9,896 and 10,495 million USD from early 2018 to mid-2019, after which it experienced a sharp and substantial jump to nearly 49,200 million USD in the third quarter of 2019. Similar to total assets, this surge likely corresponds to an exceptional corporate event or accounting adjustment. After this peak, equity values held steady in the 48,000 to 49,000 million USD range through 2020 and 2021, followed by a moderate decline in 2022 and a notable reduction to around 27,000 million USD by the first quarter of 2023. The drop in 2023 suggests either write-downs, significant dividends, or other equity adjustments occurring near that period.

Financial Leverage

Financial leverage ratios fluctuated substantially over the period. Initially, leverage hovered around 2.3 from early 2018 until the first quarter of 2019. It then spiked to approximately 3.3 in the second quarter of 2019, coinciding with the sharp increases in assets and equity noted previously. Subsequently, leverage fell sharply, stabilizing between 1.68 and 1.75 from the third quarter of 2019 through 2022, indicating an improved equity cushion relative to assets during this span. Towards the first quarter of 2023, financial leverage increased again to around 2.3, reflecting either a relative decrease in equity or an increase in liabilities, consistent with the declines observed in equity and assets at this time.

Overall, the data indicates periods of stability interrupted by a significant expansion starting mid-2019, potentially due to major corporate transactions or reclassifications. Post-2019, the company maintained lower financial leverage and relatively stable asset and equity levels until a notable contraction occurred by early 2023. These patterns could reflect strategic shifts, asset disposals, or broader market factors influencing the company’s financial structure and risk profile.