Centene Corp (CNC)
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 | 3.12 | 3.28 | 3.20 | 2.92 | 2.67 |
Based on the provided data for Centene Corp's solvency ratios, it can be observed that the company has consistently maintained a very low level of debt relative to its assets, capital, and equity over the years analyzed. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been reported as 0.00 for each year from 2020 to 2024, indicating that the company has no significant debt obligations in relation to these financial metrics.
On the other hand, the financial leverage ratio, which provides an insight into the company's use of debt in its capital structure, has shown a gradual increase from 2.67 in 2020 to 3.12 in 2024. This suggests that Centene Corp's reliance on debt financing has slightly increased over the years, although the absolute level of debt remains low based on the aforementioned ratios.
Overall, Centene Corp appears to have a strong solvency position, with minimal debt relative to its assets, capital, and equity. The gradual increase in the financial leverage ratio may indicate a strategic shift towards utilizing debt for funding, but it is important to note that the company's overall leverage remains at a manageable level.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.06 | 4.04 | 3.95 | 3.73 | 4.81 |
Centene Corp's interest coverage ratio has shown fluctuations over the past five years. In December 2020, the interest coverage ratio was 4.81, indicating that the company generated sufficient operating income to cover its interest expenses nearly five times over. However, by December 2021, the ratio declined to 3.73, suggesting a decrease in the company's ability to meet its interest obligations from operating earnings alone.
Subsequently, in December 2022 and December 2023, the interest coverage ratio improved slightly to 3.95 and 4.04, respectively. This indicates a moderate recovery in the company's ability to cover its interest expenses.
Notably, by December 2024, the interest coverage ratio significantly improved to 7.06, signaling a substantial increase in Centene Corp's ability to meet its interest payments from its operating income.
Overall, the trend in Centene Corp's interest coverage ratio shows some variability, with fluctuations in the company's ability to cover interest expenses. The significant improvement in the ratio by December 2024 is a positive indicator of enhanced financial stability and capacity to service debt obligations.