Concentra Group Holdings Parent, Inc. (CON)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 9.15 | 2.02 | 2.36 | — |
Concentra Group Holdings Parent, Inc. demonstrates strong solvency ratios based on the provided data. The Debt-to-assets ratio, which indicates the proportion of the company's assets financed by debt, shows a consistent and favorable trend of 0.00 from 2022 to 2024, implying that the company does not rely on debt to fund its assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also reflect a stable and healthy financial position, with both ratios standing at 0.00 across the years. This signifies that the company is not overly reliant on debt to finance its operations and investments, and it has a significant portion of its capital and equity contributed by equity holders.
Furthermore, the Financial leverage ratio, which measures the extent to which the company is using its debt to finance its assets, shows a significant increase from 2.36 in 2022 to 9.15 in 2024. This substantial rise may indicate a shift towards greater reliance on debt financing compared to equity, which could potentially increase financial risk and leverage in the company's capital structure.
In conclusion, based on the solvency ratios provided, Concentra Group Holdings Parent, Inc. appears to maintain a strong financial position with low levels of debt relative to its assets, capital, and equity. However, the notable increase in the Financial leverage ratio warrants further scrutiny to assess the potential impact on the company's overall financial stability and risk profile.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Interest coverage | 4.32 | 2.52 | 8,016.78 | 9,606.84 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a healthier financial position, as it suggests the company has more earnings available to cover its interest expenses.
Looking at Concentra Group Holdings Parent, Inc.'s interest coverage over the years, we observe a significant decline from 9,606.84 in 2021 to 2.52 in 2023, signifying a substantial deterioration in their ability to cover interest expenses with operating income during this period. This sharp drop may raise concerns about the company's financial stability and its ability to service its debt obligations.
It is essential for stakeholders to closely monitor this trend and investigate the underlying reasons for the decline in interest coverage. Management may need to take strategic actions to improve the company's profitability and cash flow generation to enhance its ability to meet interest payments and ensure long-term financial sustainability.