ANI Pharmaceuticals Inc (ANIP)
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 | 3.00 | 1.98 | 2.25 | 2.15 | 2.36 |
Based on the provided data for ANI Pharmaceuticals Inc, we can observe the following trends in the solvency ratios:
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets that are financed through debt. ANI Pharmaceuticals Inc has consistently maintained a debt-to-assets ratio of 0.00 across the years 2020 to 2024. This suggests that the company has not relied on debt to finance its assets during this period.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of a company's capital that is funded by debt. Similar to the debt-to-assets ratio, ANI Pharmaceuticals Inc has maintained a debt-to-capital ratio of 0.00 throughout the years 2020 to 2024. This indicates that the company's capital structure has not been significantly influenced by debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the extent to which a company is leveraged through debt relative to its equity. ANI Pharmaceuticals Inc has consistently reported a debt-to-equity ratio of 0.00 from 2020 to 2024. This implies that the company's debt levels have been minimal in comparison to its equity, indicating a lower financial risk associated with debt.
4. Financial leverage ratio: The financial leverage ratio assesses the extent to which a company uses debt to finance its operations and growth. ANI Pharmaceuticals Inc demonstrated fluctuations in its financial leverage ratio, decreasing from 2.36 in 2020 to 1.98 in 2023, before sharply increasing to 3.00 in 2024. This suggests a varying degree of reliance on debt financing over the years, with a notable increase in leverage in 2024.
In conclusion, ANI Pharmaceuticals Inc's solvency ratios indicate a conservative approach to debt management, with minimal reliance on debt financing relative to its assets, capital, and equity. However, the fluctuation in the financial leverage ratio in 2024 warrants further investigation into the company's debt strategy and the potential implications for its financial stability and risk management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -0.26 | 1.74 | -0.32 | -4.10 | -1.65 |
ANI Pharmaceuticals Inc interest coverage has shown significant fluctuations over the past five years. The interest coverage ratio, which indicates the company's ability to meet its interest obligations, was negative in three out of the five years provided - December 31, 2020, December 31, 2021, and December 31, 2022. This suggests that the company may have had difficulty covering its interest expenses with its operating income during these periods.
However, there was a notable improvement in the interest coverage ratio on December 31, 2023, where it reached 1.74, indicating that the company's operating income was more than sufficient to cover its interest expenses. Unfortunately, this improvement was not sustained as the ratio turned negative again on December 31, 2024.
Overall, the trend in ANI Pharmaceuticals Inc interest coverage shows inconsistency and indicates potential concerns regarding the company's ability to consistently meet its interest payment obligations from its operating income. This variability may pose financial risks and suggests the need for careful monitoring and evaluation of the company's financial health and performance.