Amphastar P (AMPH)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.40 | 0.10 | 0.12 | 0.07 | 0.08 |
| Debt-to-capital ratio | 0.49 | 0.13 | 0.15 | 0.10 | 0.11 |
| Debt-to-equity ratio | 0.94 | 0.14 | 0.18 | 0.11 | 0.12 |
| Financial leverage ratio | 2.37 | 1.40 | 1.51 | 1.57 | 1.54 |
Amphastar Pharmaceuticals Inc's solvency ratios have shown noticeable fluctuations over the past five years. The debt-to-assets ratio has increased significantly from 0.08 in 2019 to 0.39 in 2023, indicating an increase in the proportion of assets financed by debt. The debt-to-capital and debt-to-equity ratios have also shown a similar trend, with substantial increases in 2023 compared to 2019.
The financial leverage ratio, which provides a broader view of the company's overall debt levels, has also increased from 1.54 in 2019 to 2.37 in 2023. This indicates that the company is increasingly reliant on debt financing to support its operations and growth.
Overall, these solvency ratios suggest that Amphastar Pharmaceuticals Inc has taken on a more aggressive approach to debt financing in recent years, potentially to fund expansion initiatives or other strategic investments. Investors and stakeholders may want to closely monitor how the company manages its debt levels and assess the associated risks to ensure long-term financial stability and sustainability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.24 | 63.22 | 94.50 | 14.22 | 527.57 |
Amphastar Pharmaceuticals Inc's interest coverage ratio, which measures the company's ability to meet interest payments on its outstanding debt, has shown significant fluctuations over the past five years. In 2023, the interest coverage ratio stands at 8.99, indicating that the company earned 8.99 times the amount required to cover its interest expense. This represents a decrease from the previous year's ratio of 202.51, suggesting a significant reduction in its ability to cover interest payments.
It is noteworthy that in 2022 and 2021, the interest coverage ratios were notably high at 202.51 and 245.35, respectively, showcasing strong financial health and the ability of the company to easily meet its interest obligations during those years. However, the absence of data for 2020 and 2019 prevents a comprehensive analysis of the trend in interest coverage over the past five years.
Overall, while the 2023 interest coverage ratio of 8.99 is lower than in previous years, it still suggests that Amphastar Pharmaceuticals Inc has an adequate operating income to cover its interest expenses. It would be important to monitor future financial performance to assess the company's ability to maintain a healthy interest coverage ratio in the long term.