ANI Pharmaceuticals Inc (ANIP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.31 | 0.38 | 0.37 | 0.37 | 0.38 |
| Debt-to-capital ratio | 0.40 | 0.48 | 0.46 | 0.47 | 0.45 |
| Debt-to-equity ratio | 0.66 | 0.91 | 0.86 | 0.88 | 0.83 |
| Financial leverage ratio | 2.09 | 2.42 | 2.31 | 2.36 | 2.15 |
ANALYSIS:
1. Debt-to-assets ratio:
ANI Pharmaceuticals Inc's debt-to-assets ratio has been decreasing over the past five years, from 0.41 in 2019 to 0.32 in 2023. This indicates that the company's level of debt in relation to its total assets is improving, which could suggest a stronger financial position and lower risk of insolvency.
2. Debt-to-capital ratio:
The debt-to-capital ratio of ANI Pharmaceuticals Inc has also shown a decreasing trend from 0.47 in 2019 to 0.40 in 2023. This indicates that the company has been relying less on debt financing and more on equity financing, which can be seen as a positive sign for investors and creditors.
3. Debt-to-equity ratio:
The debt-to-equity ratio of ANI Pharmaceuticals Inc has decreased from 0.87 in 2019 to 0.66 in 2023. This implies that the company has a lower level of debt in relation to its shareholders' equity, showing a decreasing financial risk and an improved ability to cover its obligations.
4. Financial leverage ratio:
The financial leverage ratio, which measures the proportion of a company's total assets that are financed by debt, has shown a downward trend from 2.15 in 2019 to 2.09 in 2023. This suggests that the company is relying less on debt to finance its assets, which can reduce the risk associated with financial leverage.
Overall, ANI Pharmaceuticals Inc's solvency ratios have improved over the past five years, indicating a stronger financial position and reduced risk of insolvency. This trend of decreasing debt ratios suggests that the company is managing its debt levels effectively and becoming more stable in its financial structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.45 | -1.24 | -3.33 | -1.69 | 1.21 |
ANI Pharmaceuticals Inc's interest coverage ratio has fluctuated significantly over the past five years. In 2023, the interest coverage ratio improved to 1.84, indicating that the company generated sufficient operating income to cover its interest expenses. This marks a stark improvement compared to the negative ratios reported in 2022, 2021, and 2020, which suggest that the company struggled to meet its interest obligations using its operating income during those years. The positive ratio of 1.78 in 2019 indicates that the company's operating income was more than adequate to cover its interest expenses that year. Overall, ANI Pharmaceuticals Inc's interest coverage has been volatile, and the recent improvement in 2023 is a positive sign of the company's ability to service its debt obligations from its operating earnings.