Biomarin Pharmaceutical Inc (BMRN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.09 | 0.17 | 0.18 | 0.18 |
| Debt-to-capital ratio | 0.10 | 0.11 | 0.19 | 0.20 | 0.21 |
| Debt-to-equity ratio | 0.11 | 0.12 | 0.24 | 0.25 | 0.26 |
| Financial leverage ratio | 1.24 | 1.38 | 1.38 | 1.41 | 1.43 |
Biomarin Pharmaceutical Inc has shown consistent improvement in its solvency ratios over the years. The Debt-to-assets ratio has decreased from 0.18 in 2020 to 0.09 in 2024, indicating a reduction in the proportion of assets financed by debt. Similarly, the Debt-to-capital ratio has declined from 0.21 in 2020 to 0.10 in 2024, reflecting a decreasing dependence on debt for capital structure. The Debt-to-equity ratio has also reduced from 0.26 in 2020 to 0.11 in 2024, demonstrating a strengthening equity position relative to debt.
Furthermore, the Financial leverage ratio has shown a decreasing trend from 1.43 in 2020 to 1.24 in 2024, indicating a reduction in the use of financial leverage to support operations. Overall, these solvency ratios suggest that Biomarin Pharmaceutical Inc has been effectively managing its debt levels and enhancing its financial stability and ability to meet its obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 39.24 | 11.88 | 10.37 | -3.91 | -0.67 |
Biomarin Pharmaceutical Inc's interest coverage has shown significant fluctuations over the past few years. The company experienced negative values in both 2020 and 2021, indicating that its operating income was insufficient to cover its interest expenses during those periods. However, there has been a notable improvement in the interest coverage ratio in subsequent years, with values increasing to 10.37 in 2022, 11.88 in 2023, and reaching 39.24 in 2024.
The positive trend seen from 2022 onwards suggests that Biomarin Pharmaceutical Inc has been generating more operating income relative to its interest expenses, which is a positive sign of the company's financial health. The substantial increase in the interest coverage ratio in 2024 indicates a significant improvement in the company's ability to meet its interest obligations from its operating profits.
Overall, the improving trend in Biomarin Pharmaceutical Inc's interest coverage ratio depicts a strengthening financial position and signifies the company's ability to comfortably service its debt obligations with its operating earnings in the recent years.