Boston Scientific Corp (BSX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.81 | 1.82 | 1.85 | 1.94 | 2.01 |
Based on the provided data, Boston Scientific Corp has consistently maintained a strong solvency position over the years as indicated by its solvency ratios.
1. Debt-to-assets ratio: The company's debt-to-assets ratio has been reported as 0.00 for each year from 2020 to 2024. This implies that Boston Scientific Corp has had no debt in relation to its total assets during this period, signifying a low financial risk associated with its capital structure.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has also been recorded as 0.00 across the five years, reflecting that the company has not relied on debt financing to fund its operations in relation to its total capital.
3. Debt-to-equity ratio: The debt-to-equity ratio has consistently been reported as 0.00 for all the years under consideration. This indicates that Boston Scientific Corp has not had any long-term debt in comparison to its equity, suggesting a conservative financial structure.
4. Financial leverage ratio: The financial leverage ratio has been declining over the years from 2.01 in 2020 to 1.81 in 2024. This trend indicates that the company has been reducing its reliance on debt to finance its operations, leading to a stronger financial position and decreased financial risk.
Overall, the solvency ratios of Boston Scientific Corp suggest that the company has maintained robust financial health by effectively managing its debt levels, capital structure, and financial leverage, which is indicative of a stable and sustainable business operation.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.48 | 8.52 | 3.41 | 4.18 | 1.08 |
The interest coverage ratio for Boston Scientific Corp has shown a fluctuating trend over the past five years. In December 31, 2020, the interest coverage was 1.08, indicating that the company's earnings were just enough to cover its interest expenses. However, there has been significant improvement in the following years, with the ratio increasing to 4.18 in December 31, 2021, 3.41 in December 31, 2022, 8.52 in December 31, 2023, and 8.48 in December 31, 2024.
The increasing trend in the interest coverage ratio suggests that Boston Scientific Corp has been more capable of meeting its interest obligations from its operating profits. This improvement indicates a strengthened financial position and reduced financial risk for the company. However, it is important to note that while the company's ability to cover interest expenses has been on an upward trajectory, ongoing monitoring of this ratio is essential to ensure long-term financial stability.