Biomarin Pharmaceutical Inc (BMRN)

Solvency ratios reflect Biomarin Pharmaceutical Inc's ability to meet its long-term financial obligations and manage its debt levels effectively. The debt-to-assets ratio has shown a consistent decline from 0.18 in 2021 to 0.09 in 2023, indicating that the company's debt in relation to its total assets has become more favorable over the years.

Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a downward trend, signaling a reduction in the company's reliance on debt financing compared to its total capital and equity, respectively. This suggests that Biomarin Pharmaceutical Inc has been able to strengthen its financial structure and improve its solvency position.

The financial leverage ratio has fluctuated over the years but has generally remained below the 1.50 mark, indicating that the company has been using debt financing conservatively and has not been overly leveraged. Overall, the solvency ratios portray a positive picture of Biomarin Pharmaceutical Inc's ability to manage its debt effectively and maintain a healthy financial position.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.

Looking at Biomarin Pharmaceutical Inc's interest coverage over the past five years, we observe a fluctuating trend. In 2023, the interest coverage ratio improved significantly to 11.88, indicating the company's ability to cover interest expenses improved substantially compared to the previous year. This suggests that Biomarin Pharmaceutical Inc's operating income is more than sufficient to cover its interest payments, which is a positive sign for creditors and investors.

In 2022, the interest coverage ratio was 10.37, indicating a relatively strong ability to meet interest obligations. However, in 2021 and 2019, the interest coverage ratios were negative, indicating that Biomarin Pharmaceutical Inc's operating income was insufficient to cover its interest expenses during those years. This could raise concerns about the company's financial health and ability to service its debt.

Overall, the recent improvement in Biomarin Pharmaceutical Inc's interest coverage ratio is a positive development, indicating better debt-servicing capabilities. However, attention should be paid to the fluctuations in the ratio over the past few years to assess the company's overall financial stability and ability to manage its debt obligations effectively.