Astrana Health Inc (ASTH)
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 | 1.90 | 1.52 | 1.78 | 1.94 | 2.47 |
Astrana Health Inc's solvency ratios indicate a strong financial position with consistently low debt levels across the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00, signaling that the company's assets are mostly financed through equity rather than debt. This suggests a low risk of financial distress due to debt obligations.
Furthermore, the Financial leverage ratio has shown a decreasing trend from 2.47 in 2020 to 1.52 in 2023, before slightly increasing to 1.90 in 2024. This decline indicates that the company is relying less on debt financing to support its operations, which is generally considered positive for long-term solvency and financial stability. Overall, Astrana Health Inc's solvency ratios reflect a prudent capital structure and a healthy balance between debt and equity financing.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.44 | 6.58 | 11.94 | 15.41 | 74.40 |
To analyze Astrana Health Inc's interest coverage based on the given data, we observe a declining trend over the years. As of December 31, 2020, the interest coverage ratio stood at a healthy 74.40, indicating the company's strong ability to meet its interest obligations. However, by the end of December 31, 2024, the interest coverage ratio had decreased significantly to 3.44, suggesting a concerning decline in the company's ability to cover its interest expenses with its earnings.
A decreasing interest coverage ratio over time can raise red flags regarding the company's financial health and sustainability. It may signal that Astrana Health Inc is becoming less capable of servicing its debt obligations using its operating profits. This could result in challenges in meeting interest payments, potential financial strain, and heightened risk of default.
It is essential for investors and stakeholders to closely monitor Astrana Health Inc's interest coverage ratio and overall financial performance to assess the company's ability to manage its debt effectively and sustain its operations in the long run.