CONMED Corporation (CNMD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.76 | 3.08 | 2.25 | 2.47 | 2.50 |
The solvency ratios of Conmed Corp. reflect its ability to meet its long-term financial obligations and indicate the extent to which the company relies on debt financing.
1. Debt-to-assets ratio: This ratio remained relatively stable over the past five years, ranging between 0.39 and 0.46. A lower debt-to-assets ratio suggests that a smaller proportion of the company's assets are financed by debt, indicating lower financial risk.
2. Debt-to-capital ratio: The trend in this ratio shows variability over the years, with values fluctuating between 0.47 and 0.59. A higher debt-to-capital ratio indicates a larger portion of the company's capital structure is financed through debt, which could potentially increase financial risk.
3. Debt-to-equity ratio: This ratio experienced fluctuations as well, ranging from 0.87 to 1.41. A high debt-to-equity ratio signifies that the company relies more on debt financing relative to equity, which could lead to higher financial leverage and risk.
4. Financial leverage ratio: The financial leverage ratio ranged between 2.25 and 3.08, indicating the company's ability to generate earnings to cover its financial obligations. A higher leverage ratio suggests higher financial risk and dependency on debt financing.
Overall, Conmed Corp.'s solvency ratios demonstrate a mix of debt and equity financing strategies, with some fluctuations over the years. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial health and risk profile.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.03 | -1.45 | 3.06 | 1.04 | 1.73 |
The interest coverage ratio for Conmed Corp. has shown some fluctuation over the past five years. In 2023, the company's interest coverage ratio stood at 3.03, indicating that Conmed Corp. generated sufficient earnings before interest and taxes (EBIT) to cover its interest expenses 3.03 times over. This represents an improvement compared to the previous year when the ratio was 2.42.
Looking back at 2021, Conmed Corp. had an interest coverage ratio of 3.09, which was relatively stable compared to 2023. However, in 2020 and 2019, the interest coverage ratios were lower at 1.04 and 1.85, respectively. These lower ratios suggest that the company had less earnings relative to its interest expenses in those years.
Overall, an interest coverage ratio above 1 indicates that the company is able to cover its interest expenses with its operating income. A higher ratio signifies a stronger ability to meet interest obligations, which can be reassuring for creditors and investors. It is worth noting that while Conmed Corp. has shown variations in its interest coverage ratio over the years, the recent improvement in 2023 is a positive sign for the company's financial health.