Collegium Pharmaceutical Inc (COLL)

The solvency ratios of Collegium Pharmaceutical Inc provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio has gradually increased from 0.04 in 2019 to 0.58 in 2023, indicating that the company has been relying more on debt to finance its assets over the years. A higher ratio implies a higher proportion of assets financed by debt.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also shown an upward trend, indicating an increase in the proportion of capital financed through debt. This ratio has increased from 0.12 in 2019 to 0.77 in 2023.

3. Debt-to-equity ratio: The debt-to-equity ratio measures the company's financial leverage by comparing the capital contributed by debt and equity holders. Collegium Pharmaceutical Inc's debt-to-equity ratio has increased significantly from 0.13 in 2019 to 3.41 in 2023, suggesting a substantial reliance on debt to finance operations.

4. Financial leverage ratio: The financial leverage ratio reflects the proportion of assets financed by debt in relation to equity. Collegium Pharmaceutical Inc's financial leverage ratio has also shown an increasing trend from 3.50 in 2019 to 5.85 in 2023, indicating higher financial risk associated with debt financing.

In summary, the solvency ratios of Collegium Pharmaceutical Inc suggest a growing reliance on debt to finance its operations and investments over the years, leading to higher financial risk and a potentially increased burden of debt repayment in the future. Investors and stakeholders should closely monitor these ratios to assess the company's long-term financial health and sustainability.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest expenses with its operating income. A higher ratio indicates a healthier financial position, as the company has more earnings available to cover interest costs.

Looking at Collegium Pharmaceutical Inc's interest coverage ratio over the past five years, we observe a fluctuating trend. In 2023, the company's interest coverage ratio improved significantly to 2.47, indicating that Collegium generated 2.47 times the operating income needed to cover its interest expenses. This improvement from the previous year suggests a strengthened ability to meet interest obligations.

In contrast, in 2022, Collegium's interest coverage ratio was relatively low at 0.54, signaling a potential challenge in meeting interest payments with operating income alone. The notable increase in 2023 likely reflects improved financial performance and a better ability to service debt.

In 2021, the interest coverage ratio was 1.06, showing a marginal increase from the previous year. Although the ratio improved slightly, it remains close to 1, indicating that the company barely generated enough operating income to cover its interest expenses.

Furthermore, in 2020, Collegium's interest coverage ratio was 1.96, suggesting a healthier financial position compared to 2021. The company demonstrated a stronger ability to cover interest costs with its operating income that year.

Unfortunately, financial data for 2019 is not available for a more comprehensive analysis. Nonetheless, the trend in the interest coverage ratio for Collegium Pharmaceutical Inc shows variability over the past four years, with 2023 demonstrating a significant improvement in the company's capacity to cover interest expenses.