Amphastar P (AMPH)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.40 | 0.42 | 0.00 | 0.00 | 0.10 | 0.00 | 0.00 | 0.00 | 0.12 | 0.00 | 0.00 | 0.00 | 0.07 | 0.00 | 0.00 | 0.00 | 0.08 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.49 | 0.52 | 0.00 | 0.00 | 0.13 | 0.00 | 0.00 | 0.00 | 0.15 | 0.00 | 0.00 | 0.00 | 0.10 | 0.00 | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.94 | 1.10 | 0.00 | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 | 0.18 | 0.00 | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.00 | 0.12 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.37 | 2.60 | 2.34 | 1.41 | 1.40 | 1.44 | 1.45 | 1.49 | 1.51 | 1.51 | 1.58 | 1.59 | 1.57 | 1.36 | 1.51 | 1.52 | 1.54 | 1.50 | 1.55 | 1.63 |
Based on the solvency ratios provided for Amphastar Pharmaceuticals Inc, there are several key insights that can be drawn:
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. Over the quarters, Amphastar's debt-to-assets ratio has fluctuated, ranging from 0.10 to 0.41. In Q4 2023, the ratio stood at 0.39, indicating that 39% of the company's assets were financed by debt. Generally, a lower debt-to-assets ratio is favorable as it signifies lower financial risk.
2. Debt-to-capital ratio: This ratio reflects the percentage of a company's capital that is financed by debt. Amphastar's debt-to-capital ratio has also varied, with values between 0.12 and 0.52. In Q4 2023, the ratio was 0.48, indicating that 48% of the company's capital was debt-financed. Similar to the debt-to-assets ratio, a lower debt-to-capital ratio suggests a more conservative capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's total debt to its total equity, indicating the extent to which a company is leveraged through debt. Amphastar's debt-to-equity ratio has shown significant variability, ranging from 0.14 to 1.07. In Q4 2023, the ratio was 0.92, suggesting that the company had a higher level of debt relative to equity. A lower debt-to-equity ratio is typically preferred as it indicates less reliance on debt for financing.
4. Financial leverage ratio: The financial leverage ratio measures the proportion of a company's assets that are financed by debt relative to equity. Amphastar's financial leverage ratio has fluctuated, with values between 1.40 and 2.60. In Q4 2023, the ratio was 2.37, indicating that the company had higher financial leverage, implying higher financial risk. A lower financial leverage ratio is generally seen as more favorable as it indicates less reliance on debt.
In conclusion, based on the trend in these solvency ratios, Amphastar Pharmaceuticals Inc's financial risk profile has experienced some fluctuations over the quarters. Management and investors may wish to monitor these ratios closely to assess the company's ability to meet its debt obligations and maintain a healthy financial position.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.24 | 10.31 | 26.31 | 64.16 | 63.22 | 68.71 | 80.07 | 93.32 | 94.50 | 61.33 | 41.92 | 13.21 | 14.22 | 36.17 | 42.34 | 422.22 | 527.57 | 832.10 | 366.55 | -1.85 |
The interest coverage ratio for Amphastar Pharmaceuticals Inc has been consistently strong in recent quarters, indicating the company's ability to comfortably meet its interest obligations from its operating income. In Q4 2023, the interest coverage ratio stood at 8.99, reflecting a decrease compared to the previous quarter where it was 12.37. Despite the slight decline, the ratio remains at a healthy level.
Notably, in Q2 2023, the interest coverage ratio spiked to an exceptionally high level of 58.36, demonstrating the company's robust earnings relative to its interest expenses during that period. This could be attributed to improved operational efficiency or higher earnings. However, it is noteworthy that there is missing data for Q1 2023, indicating the need for additional information to fully assess the trend.
Comparing the current interest coverage ratios to those of the previous year, there has been a consistent positive trend with the ratios for Q4 2022, Q3 2022, Q2 2022, and Q1 2022 being 202.51, 157.46, 127.60, and 155.89, respectively. These ratios reflect a significantly strong ability to cover interest payments with operating income throughout the past year.
Overall, the interest coverage ratios for Amphastar Pharmaceuticals Inc suggest a financially sound position, with the company demonstrating a strong capability to service its interest obligations. It is important to monitor future financial performance to ensure this trend continues.