Acadia Healthcare Company Inc (ACHC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.25 | 0.27 | 0.31 | 0.46 | 0.45 |
| Debt-to-capital ratio | 0.33 | 0.33 | 0.37 | 0.61 | 0.55 |
| Debt-to-equity ratio | 0.48 | 0.49 | 0.59 | 1.56 | 1.24 |
| Financial leverage ratio | 1.93 | 1.77 | 1.89 | 3.42 | 2.75 |
Acadia Healthcare Company Inc's solvency ratios indicate the company’s ability to meet its long-term financial obligations and manage its debt levels over the years.
The Debt-to-assets ratio has shown a decreasing trend from 0.49 in 2020 to 0.26 in 2023, indicating a lower proportion of total assets funded by debt. This trend suggests that the company has been able to better manage its use of debt financing in relation to its assets.
The Debt-to-capital ratio has remained relatively stable, indicating that around one-third of the company’s capital structure is debt-financed over the years. This shows a consistent approach to balancing debt and equity in the company’s capital structure.
The Debt-to-equity ratio has significantly improved from 1.66 in 2020 to 0.49 in 2023, suggesting a decrease in the proportion of debt relative to equity. This improvement indicates a stronger financial position and reduced reliance on debt funding.
The Financial leverage ratio has also shown a declining trend from 3.42 in 2020 to 1.93 in 2023, reflecting a decrease in the company’s reliance on debt to finance its operations. A lower financial leverage ratio signifies lower financial risk and greater financial stability.
Overall, based on the solvency ratios analysis, Acadia Healthcare Company Inc has demonstrated an improvement in its solvency position over the years, with better management of debt levels and a more balanced capital structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -6.21 | 86.36 | 42.35 | -38.84 | 36.67 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing Acadia Healthcare Company Inc's interest coverage over the past five years reveals a positive trend. The interest coverage ratio has consistently increased from 2.16 in 2019 to 6.17 in 2023, peaking at 6.40 in 2022. This improvement suggests that Acadia Healthcare has been better positioned to meet its interest payments over the years.
The significant increase in the interest coverage ratio from 2020 to 2021, followed by relatively stable ratios in 2022 and 2023, indicates that Acadia Healthcare's operating income has been relatively strong compared to its interest expenses.
Overall, Acadia Healthcare Company Inc's interest coverage has strengthened over the years, reflecting improved financial health and ability to service its debt obligations. This trend may indicate a favorable operating performance and stability in meeting interest payments.