Acadia Healthcare Company Inc (ACHC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.94 | 1.93 | 1.77 | 1.89 | 3.42 |
Based on the provided solvency ratios of Acadia Healthcare Company Inc, the company demonstrates a strong financial position with consistently low debt ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all show a consistent value of 0.00 across December 31, 2020 to December 31, 2024, indicating that the company has no debt relative to its assets, capital, or equity during this period.
Moreover, the Financial Leverage Ratio experienced a significant decrease from 3.42 on December 31, 2020, to around 1.89 in 2021, and continued to decrease slightly to 1.77 in 2022, before slightly increasing to 1.93 and 1.94 in 2023 and 2024 respectively. This signifies that the company has been effectively reducing its reliance on debt financing and moving towards a more equity-funded capital structure, which is generally viewed positively by investors and creditors.
Overall, Acadia Healthcare Company Inc's solvency ratios indicate a solid financial health, with minimal debt and a declining trend in financial leverage, suggesting a strong ability to meet its financial obligations and weather potential economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.94 | 0.69 | 6.36 | 4.58 | 2.16 |
Interest coverage is a critical financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio implies that the company is in a better position to cover its interest expenses, while a low ratio may suggest financial difficulties.
Analyzing Acadia Healthcare Company Inc's interest coverage ratio over the past five years, we observe fluctuations in the company's ability to cover its interest payments.
As of December 31, 2020, the interest coverage ratio stood at 2.16, indicating that Acadia Healthcare's operating income was 2.16 times its interest expenses. This ratio improved significantly to 4.58 by December 31, 2021, suggesting a stronger ability to meet interest obligations.
By December 31, 2022, the interest coverage ratio further increased to 6.36, reflecting a more robust financial position in terms of servicing debt. However, there was a notable decline in the ratio to 0.69 by December 31, 2023, suggesting potential concerns regarding the company's ability to cover interest payments with its operating income.
Finally, as of December 31, 2024, the interest coverage ratio recovered to 3.94, showing an improvement compared to the previous year but still below the levels seen in 2022.
Overall, despite some fluctuations, Acadia Healthcare Company Inc has demonstrated varying levels of ability to meet its interest obligations over the past five years, with the ratio fluctuating between highs and lows. It is important for investors and stakeholders to closely monitor this ratio to gauge the company's financial health and debt repayment capacity.