Bio-Rad Laboratories Inc (BIO)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.09 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.12 | 0.11 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.14 | 0.12 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.41 | 1.40 | 1.30 | 1.31 | 1.39 |
Bio-Rad Laboratories Inc. exhibits a consistently low level of debt in relation to its assets, capital, and equity, as indicated by its solvency ratios over the past five years. The debt-to-assets ratio has ranged between 0.00 and 0.10, reflecting a conservative approach to leverage. The debt-to-capital and debt-to-equity ratios also show a similar trend, with values typically below 0.15, indicating the company's ability to finance its operations predominantly through equity.
Additionally, the financial leverage ratio has been relatively stable around the 1.40 mark, suggesting that Bio-Rad Laboratories relies more on equity financing than debt financing to support its operations. This stable financial leverage ratio indicates a prudent approach to managing the company's capital structure and mitigating financial risk.
Overall, the solvency ratios of Bio-Rad Laboratories Inc. demonstrate a strong financial position with low levels of debt, signaling a solid foundation for the company's long-term sustainability and growth.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -16.19 | -122.43 | 3,514.26 | 225.97 | 97.56 |
Bio-Rad Laboratories Inc.'s interest coverage ratio has shown fluctuations over the past five years. The ratio was at its lowest in 2023 at 6.83, indicating a decrease in the company's ability to cover its interest expenses using its operating income. In contrast, in 2021, the interest coverage ratio was significantly high at 315.56, reflecting a strong ability to meet interest obligations with operating profits.
The drastic variations in the interest coverage ratio suggest potential changes in the company's financial performance and risk profile over the years. This could be due to factors such as variations in operating income, changes in interest expenses, or a combination of both. It is essential for stakeholders to monitor these fluctuations closely to assess the company's ability to handle its debt obligations and financial health effectively.