A QUANTITATIVE SOLVENCY PROFILE OF DXC TECHNOLOGY USING D/E, LEVERAGE, AND INTEREST COVERAGE RATIOS
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Keywords

DXC Technology; Debt-to-Equity Ratio; Leverage Ratio; Interest Coverage Ratio; Solvency Analysis; Financial Resilience; Capital Structure; IT Services Industry; Financial Risk; Corporate Finance

Abstract

This study provides a comprehensive solvency analysis of DXC Technology, a global IT services and consulting firm, by examining three fundamental financial ratios: the Debt-to-Equity (D/E) Ratio, Leverage Ratio, and Interest Coverage Ratio. These metrics are essential indicators of a company’s long-term financial stability, capital structure, and ability to meet fixed financial obligations. As DXC Technology navigates a competitive and rapidly evolving digital services landscape, understanding its solvency is critical for assessing financial risk and strategic sustainability. Drawing on publicly available financial data from recent fiscal years, this analysis evaluates how effectively DXC manages its debt obligations relative to equity, total assets, and earnings capacity. Benchmarking against industry peers offers further insight into the firm's financial positioning within the broader IT services sector. The findings reveal key strengths and vulnerabilities in DXC's capital structure and debt strategy, offering implications for investors, analysts, and corporate decision-makers. Ultimately, this solvency profile contributes to a deeper understanding of DXC Technology’s financial resilience amid industry transformation and operational realignment.

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