CONMED Corporation (CNMD)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.44 | 0.45 | 0.46 |
| 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 | 0.53 | 0.53 | 0.54 |
| 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 | 1.11 | 1.14 | 1.16 |
| Financial leverage ratio | 2.76 | 2.92 | 2.98 | 3.08 | 3.08 | 3.20 | 3.08 | 2.26 | 2.25 | 2.32 | 2.37 | 2.41 | 2.47 | 2.55 | 2.55 | 2.50 | 2.50 | 2.51 | 2.52 | 2.54 |
Conmed Corp.'s solvency ratios provide insight into the company's ability to meet its long-term obligations and manage its debt levels.
The Debt-to-assets ratio has been relatively stable over the quarters at around 0.42 to 0.46, indicating that Conmed's assets are financed primarily by equity rather than debt.
The Debt-to-capital ratio has shown a slight increase from 0.54 to 0.59 over the quarters, suggesting that a larger proportion of Conmed's capital structure is funded by debt.
The Debt-to-equity ratio has also been on an upward trend from 1.17 to 1.42, indicating an increasing reliance on debt financing compared to equity.
The Financial leverage ratio has shown an increasing trend from 2.76 to 3.08, indicating that Conmed is utilizing more debt to finance its operations and investments.
Overall, the increasing trend in the Debt-to-capital, Debt-to-equity, and Financial leverage ratios suggests that Conmed is taking on more debt relative to its capital and equity, which may indicate higher financial risk and potential limitations in the company's ability to meet its debt obligations in the long term.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.03 | 1.75 | 1.65 | -1.51 | -1.45 | -0.13 | -0.09 | 3.68 | 3.06 | 2.46 | 2.33 | 1.18 | 1.04 | 1.12 | 0.94 | 1.85 | 1.73 | 1.90 | 1.97 | 2.44 |
Interest coverage is a key financial ratio that helps assess a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the amount of interest expense incurred during a specific period.
Analyzing Conmed Corp.'s interest coverage ratio over the past eight quarters reveals fluctuations in the company's ability to cover its interest obligations. In Q4 2023, the interest coverage ratio was 3.03, indicating that Conmed generated earnings 3.03 times greater than its interest expenses for that quarter. This suggests a relatively healthy financial position, as the company's earnings were more than sufficient to cover its interest payments.
However, in Q3 and Q2 2023, the interest coverage ratios decreased to 1.75 and 1.65, respectively. These lower ratios signal a potential strain on Conmed's ability to cover its interest costs, as its earnings were closer to meeting its interest expenses during these periods. It may signify increased financial risk or decreased profitability during these quarters.
The interest coverage ratio improved in Q1 2023 to 1.77, but remained below the levels seen in Q4 2022, where the ratio was 2.42. The steady decline from the previous quarters in 2022 to Q3 and Q2 2023 could indicate a shift in Conmed's financial health or operational efficiency during that period.
Comparing the current interest coverage ratios to those in Q1 and Q2 2022, Conmed's Q4 2023 interest coverage was below the levels seen in the past. The company was more robust in terms of covering its interest expenses in Q2 and Q3 2022, with ratios of 4.16 and 4.01, respectively, indicating a stronger ability to meet its interest obligations.
Overall, the trend in Conmed's interest coverage ratios over the past eight quarters demonstrates fluctuations in the company's ability to cover its interest expenses, with some periods showing stronger coverage than others. Monitoring this ratio going forward will be essential to assess the company's financial health and its ability to service its debt obligations.