Astrana Health Inc (ASTH)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.28 | 0.21 | 0.01 | 0.28 | 0.32 |
| Debt-to-capital ratio | 0.30 | 0.27 | 0.02 | 0.41 | 0.55 |
| Debt-to-equity ratio | 0.42 | 0.37 | 0.02 | 0.70 | 1.21 |
| Financial leverage ratio | 1.52 | 1.78 | 1.90 | 2.47 | 3.80 |
Astrana Health Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it is reliant on debt financing.
1. Debt-to-assets ratio:
The trend of the debt-to-assets ratio fluctuates over the years, ranging from 0.01 in 2021 to 0.32 in 2019. This ratio indicates that in 2023, approximately 28% of Astrana Health Inc's total assets are financed by debt. The increase in 2023 compared to 2022 suggests a higher level of debt utilization in financing assets.
2. Debt-to-capital ratio:
Similarly, the trend of the debt-to-capital ratio shows variability over the years, with values ranging from 0.02 in 2021 to 0.55 in 2019. Astrana Health Inc's debt-to-capital ratio is 0.30 in 2023, indicating that 30% of the company's capital structure is attributable to debt. The decrease in this ratio from 2022 to 2023 may suggest a more balanced capital structure or reduced debt reliance.
3. Debt-to-equity ratio:
The debt-to-equity ratio fluctuates significantly over the years, from 0.02 in 2021 to 1.21 in 2019. In 2023, the ratio stands at 0.42, indicating that 42% of Astrana Health Inc's equity is financed through debt. The decrease in this ratio from 2022 suggests a lower dependence on debt to fund the company's equity portion.
4. Financial leverage ratio:
The financial leverage ratio also exhibits variability over the years, ranging from 1.52 in 2023 to 3.80 in 2019. A lower financial leverage ratio indicates a lower level of financial risk associated with debt financing. In 2023, Astrana Health Inc's financial leverage ratio of 1.52 suggests that the company has reduced its reliance on debt financing compared to previous years.
Overall, the solvency ratios of Astrana Health Inc provide a mixed picture of its financial health, with varying levels of debt utilization and financial risk over the years. The decreasing trend in some ratios, such as debt-to-capital and debt-to-equity, may indicate improved financial stability and a more conservative approach to debt management in 2023.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.76 | 13.16 | 19.65 | 10.87 | 5.71 |
Astrana Health Inc's interest coverage ratio has shown fluctuations over the past five years. The ratio, which represents the company's ability to cover its interest expenses with its operating income, decreased from 19.65 in 2021 to 6.76 in 2023. This decline indicates a potential decrease in the company's ability to meet its interest obligations from its operating earnings. However, it is important to note that even with the decrease, the interest coverage ratio of 6.76 in 2023 still indicates that Astrana Health Inc generates enough operating income to cover its interest expenses. The company should continue to monitor this ratio to ensure its financial stability and ability to meet debt obligations.