BioLife Solutions Inc (BLFS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.04 | 0.05 | 0.01 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.05 | 0.06 | 0.01 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.05 | 0.07 | 0.01 | 0.00 | 0.00 |
| Financial leverage ratio | 1.22 | 1.24 | 1.16 | 1.15 | 2.14 |
The solvency ratios provide insights into BioLife Solutions Inc's ability to meet its long-term financial obligations and the extent to which the company relies on debt financing.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The decreasing trend from 0.05 in 2022 to 0.04 in 2023 signifies that BioLife Solutions has reduced its reliance on debt to fund its assets, which is a positive sign for solvency.
2. Debt-to-capital ratio: This ratio measures the extent to which a company is funded by debt relative to its total capital. The decreasing trend from 0.06 in 2022 to 0.05 in 2023 suggests that BioLife Solutions has become more capital-efficient by reducing its debt in the capital structure.
3. Debt-to-equity ratio: This ratio shows the proportion of equity and debt used to finance the company's assets. The decreasing trend from 0.07 in 2022 to 0.05 in 2023 indicates that BioLife Solutions has reduced its reliance on debt financing in relation to equity, which is a positive indicator of financial stability.
4. Financial leverage ratio: This ratio evaluates the company's use of debt to finance its operations. The decreasing trend from 1.24 in 2022 to 1.22 in 2023 suggests that BioLife Solutions has improved its financial leverage and reduced its dependency on debt to increase assets, signaling better financial health.
Overall, the company's improving solvency ratios reflect a positive financial position, indicating better control over debt levels and enhanced capacity to meet long-term obligations with company resources.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -5,448.08 | -8,085.61 | -290.58 | -1.15 | -638.60 |
The interest coverage ratio for BioLife Solutions Inc has shown significant fluctuations over the past five years, ranging from -8,085.61 in 2022 to -1.15 in 2020. This ratio indicates the company's ability to meet its interest obligations with its operating income. A negative interest coverage ratio, as seen in all the years provided, suggests that the company's operating income is insufficient to cover its interest expenses.
The drastic negative values recorded in 2022 and 2023 indicate a particularly concerning situation, where the company's operating income is significantly insufficient to cover its interest payments. This may raise alarms regarding the company's financial stability and ability to service its debt obligations.
It is essential for BioLife Solutions Inc to address this issue promptly by either improving its operating income or restructuring its debt to avoid potential financial distress in the future.