Bio-Rad Laboratories Inc (BIO)
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 | 1.43 | 1.41 | 1.40 | 1.30 | 1.31 |
Bio-Rad Laboratories Inc maintains a strong solvency position as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which stand at 0.00 over the five-year period from December 31, 2020, to December 31, 2024. This suggests that the company has minimal financial leverage and relies more on equity financing rather than debt.
Despite the low debt levels, the financial leverage ratio has shown a slight increasing trend over the years, moving from 1.31 in 2020 to 1.43 in 2024. This indicates that the company's reliance on debt to finance its assets has slightly increased, albeit remaining at a manageable level.
Overall, Bio-Rad Laboratories Inc's solvency ratios demonstrate a conservative approach to capital structure, with a strong emphasis on equity financing and minimal reliance on debt to support its operations and investments.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -46.90 | -15.25 | -122.43 | 3,514.26 | 225.49 |
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates stronger ability to cover interest payments from operating profits.
Looking at the data provided for Bio-Rad Laboratories Inc:
1. As of December 31, 2020, the interest coverage ratio was 225.49, indicating a healthy ability to cover interest expenses.
2. By December 31, 2021, the interest coverage ratio significantly increased to 3,514.26, reflecting a substantial improvement in the company's ability to cover interest payments.
3. However, the ratio took a negative turn on December 31, 2022, with a value of -122.43, signaling that the company's operating profits were not sufficient to cover its interest expenses.
4. The negative trend continued through December 31, 2023, and December 31, 2024, with interest coverage ratios of -15.25 and -46.90 respectively, suggesting further deterioration in the company's ability to service its debt.
Overall, the interest coverage ratio of Bio-Rad Laboratories Inc has shown significant fluctuations, with a strong performance in 2020 and 2021 followed by a sharp decline in the subsequent years, indicating potential financial stress and highlighting the importance of monitoring the company's debt servicing capabilities.