Bio-Rad Laboratories Inc (BIO)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.10 | 0.10 | 0.09 | 0.09 | 0.10 | 0.09 | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.06 | 0.06 |
| Debt-to-capital ratio | 0.12 | 0.12 | 0.12 | 0.11 | 0.11 | 0.12 | 0.12 | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 | 0.07 | 0.08 |
| Debt-to-equity ratio | 0.14 | 0.14 | 0.14 | 0.12 | 0.12 | 0.14 | 0.13 | 0.12 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.08 | 0.09 |
| Financial leverage ratio | 1.41 | 1.41 | 1.42 | 1.40 | 1.40 | 1.42 | 1.42 | 1.41 | 1.30 | 1.30 | 1.30 | 1.31 | 1.31 | 1.36 | 1.37 | 1.38 | 1.39 | 1.40 | 1.39 | 1.41 |
Bio-Rad Laboratories Inc. has maintained relatively consistent solvency ratios over the past year. The debt-to-assets ratio has remained stable around 0.10, indicating that for every dollar of assets, the company has $0.10 of debt. This suggests a low level of financial leverage and indicates that the company is able to cover its debts with its assets.
The debt-to-capital ratio, which indicates the proportion of debt in the company's capital structure, has also been consistent at around 0.12. This means that 12% of the company's capital is financed by debt, while the remaining 88% is financed by equity. This ratio indicates a moderate level of leverage, which can provide tax benefits but also increase financial risk.
Similarly, the debt-to-equity ratio has remained stable around 0.14, indicating that the company has $0.14 of debt for every dollar of equity. This ratio shows that the company relies more on equity financing compared to debt, which can be seen as a positive indicator of financial stability.
The financial leverage ratio, which measures the company's financial risk by comparing total assets to shareholders' equity, has fluctuated slightly but has generally been around 1.41 to 1.43. This suggests that the company's assets are financed with a moderate level of debt compared to equity.
Overall, Bio-Rad Laboratories Inc. appears to have a stable and prudent approach to managing its solvency ratios, with a balanced mix of debt and equity financing that provides adequate financial leverage without excessive risk.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -16.20 | -2.84 | -10.07 | -4.42 | -122.43 | -291.20 | -166.02 | -41.07 | 3,514.22 | 1,455.01 | 467.83 | 321.55 | 225.61 | 196.01 | 109.99 | 88.91 | 97.56 | 23.16 | 51.18 | 33.12 |
Bio-Rad Laboratories Inc.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 6.83 to 102.29. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
The trend in the interest coverage ratio indicates that in the earlier quarters, Bio-Rad Laboratories had a higher ability to cover its interest expenses, as evidenced by the significantly higher ratios of 33.90 and 102.29 in the second and first quarters of 2022, respectively. However, over the past two quarters, the ratio has decreased to levels around 6.83 to 8.64, suggesting a slight decline in the company's ability to cover its interest costs with its operating earnings.
While the recent decrease in the interest coverage ratio raises a concern about the company's ability to meet its interest obligations comfortably, it is essential to consider other factors such as the overall profitability and cash flow of the company in conjunction with the interest coverage ratio to get a holistic view of Bio-Rad Laboratories Inc.'s financial health.