Concentra Group Holdings Parent, Inc. (CON)

Based on the solvency ratios of Concentra Group Holdings Parent, Inc., we can see a consistent trend of decreasing leverage ratios over the past three years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios are all at zero for 2021 and 2022, indicating that the company had no debt in relation to its assets, capital, or equity during those years.

However, in 2023, there has been a notable shift in the financial leverage ratio, which has increased to 2.02 from 2.36 in 2022. This suggests that the company may have taken on some debt relative to its total assets or equity in 2023. While the leverage ratio is still relatively low, this increase signifies a potential shift in the company's capital structure towards utilizing more debt financing compared to previous years.

Overall, Concentra Group Holdings Parent, Inc. has maintained a strong solvency position with minimal debt relative to its assets and equity, but the recent increase in the financial leverage ratio in 2023 indicates a need for further monitoring to ensure it does not pose a significant risk to the company's financial stability.

---

Coverage ratios

The interest coverage ratio measures a company's ability to pay its interest expenses from its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

In the case of Concentra Group Holdings Parent, Inc., the interest coverage ratio has shown significant fluctuations over the past three years.

In 2021, the interest coverage ratio was 9,606.84, indicating a very strong ability to cover interest expenses. However, in 2022, the interest coverage ratio dramatically decreased to 8,016.78. This sudden decrease could be a result of a substantial increase in interest expenses or a decline in operating income.

In 2023, the interest coverage ratio further decreased to 2.52. This substantial decline from the previous year raises concerns about the company's ability to cover its interest payments using its operating income. A low interest coverage ratio may imply financial strain and a higher risk of defaulting on debt obligations.

Overall, a declining trend in the interest coverage ratio for Concentra Group Holdings Parent, Inc. over the past three years warrants further investigation into the company's financial health, profitability, and debt management strategies.