CONMED Corporation (CNMD)
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 | 2.40 | 2.76 | 3.08 | 2.25 | 2.47 |
The solvency ratios of CONMED Corporation indicate a strong financial position in terms of leverage and debt management.
1. Debt-to-assets ratio: This ratio remained consistently at 0.00 from December 31, 2020, to December 31, 2024. A lower debt-to-assets ratio implies that the company has very little debt relative to its total assets, which is a positive sign for creditors and investors.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio also stayed at 0.00 across the same period. This ratio signifies the proportion of a company's capital that is financed through debt, and in this case, it suggests that CONMED Corporation has not relied on debt to fund its operations.
3. Debt-to-equity ratio: The debt-to-equity ratio was consistently at 0.00 from 2020 to 2024. This metric compares a company's total debt to its shareholder equity, showing how much debt is being used to finance operations relative to equity. A low debt-to-equity ratio indicates a lower financial risk and a stronger equity position.
4. Financial leverage ratio: The financial leverage ratio decreased from 2.47 in 2020 to 2.40 in 2024, with a peak in 2022 at 3.08. This ratio measures the extent to which a company uses debt to finance its operations. Despite the increase in 2022, the subsequent decline suggests that CONMED Corporation effectively managed its debt levels and maintained a reasonable balance between debt and equity financing.
Overall, the consistent low debt ratios and the improving financial leverage ratio indicate prudent financial management by CONMED Corporation, reflecting a solid solvency position and a reduced risk of financial distress.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.37 | 3.55 | -1.45 | 3.06 | 1.39 |
The interest coverage ratio for CONMED Corporation has displayed fluctuations over the years. As of December 31, 2020, the ratio stood at 1.39, indicating that the company's operating income was sufficient to cover its interest payments, although the margin was relatively slim. By December 31, 2021, the interest coverage improved significantly to 3.06, suggesting a stronger ability to cover interest expenses comfortably.
However, the ratio took a negative turn by December 31, 2022, reaching -1.45. This negative value implies that the company's operating income was insufficient to cover its interest payments during that period, raising concerns about CONMED's financial health. Nonetheless, the situation improved by December 31, 2023, with the interest coverage ratio rebounding to 3.55, indicating a healthier financial position.
The most recent data point, as of December 31, 2024, shows a further improvement in CONMED's interest coverage ratio, reaching 5.37. This increase suggests a strengthened ability to meet interest obligations from operating earnings, reflecting positively on the company's financial stability. Overall, the fluctuations in CONMED's interest coverage ratio over the years emphasize the importance of monitoring the company's operational performance and debt management strategies to ensure sustainable financial health.