Boston Scientific Corp (BSX)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.81 | 1.84 | 1.82 | 1.84 | 1.82 | 1.80 | 1.84 | 1.84 | 1.85 | 1.81 | 1.87 | 1.93 | 1.94 | 1.94 | 1.96 | 1.97 | 2.01 | 1.98 | 1.97 | 2.18 |
Boston Scientific Corp's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity. The Debt-to-assets ratio has remained at 0.00% throughout the reporting periods, highlighting the company's minimal reliance on debt to finance its operations. Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also stayed at 0.00%, indicating that the company's capital structure is not heavily reliant on debt financing.
The Financial leverage ratio shows a decreasing trend over the years, declining from 2.18 in March 2020 to 1.81 in December 2024. This suggests that Boston Scientific Corp has been gradually reducing its financial leverage, which is a positive sign for investors and creditors as lower leverage generally implies lower financial risk.
Overall, the consistent low levels of debt and decreasing financial leverage ratio reflect Boston Scientific Corp's strong solvency position and ability to meet its financial obligations comfortably.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.50 | 8.62 | 8.76 | 8.97 | 8.46 | 8.09 | 6.79 | 6.60 | 3.47 | 2.79 | 3.17 | 2.72 | 4.19 | 4.64 | 2.62 | 1.68 | 0.82 | 0.15 | 0.86 | 1.57 |
The interest coverage ratio measures a company's ability to pay interest expenses on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses. A higher interest coverage ratio indicates a greater ability to meet interest obligations.
Based on the provided data for Boston Scientific Corp, the interest coverage ratio has shown fluctuating trends over the specified periods. The ratio was relatively low in the earlier periods, with a value of 0.15 as of September 30, 2020, reflecting potentially strained ability to cover interest payments with operating profits alone.
However, there has been a notable improvement in the interest coverage ratio in subsequent periods. The ratio gradually increased, exceeding 1 and reaching more stable levels from March 31, 2021 onwards. The company's interest coverage ratio improved significantly, surpassing 8 by the end of December 31, 2024.
The increasing trend in the interest coverage ratio indicates that Boston Scientific Corp's earnings are more than sufficient to cover its interest expenses comfortably. This improvement signifies a healthier financial position and reduced financial risk related to debt servicing obligations. It suggests enhanced financial stability and lower likelihood of defaulting on interest payments, which could be positively perceived by investors and creditors.