Concentra Group Holdings Parent, Inc. (CON)

Concentra Group Holdings Parent, Inc. demonstrates a strong solvency position, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all four quarters of 2024. These ratios suggest that the company has minimal financial leverage and relies less on debt to finance its operations.

However, the financial leverage ratio, which measures the extent to which the company uses debt to finance its assets, shows some fluctuations during the year. The ratio increased significantly from 1.98 in March to 9.15 in December, indicating a substantial rise in financial leverage in the fourth quarter. This may imply a shift towards a more leveraged capital structure, which can pose risks in terms of financial stability and debt repayment obligations.

Overall, while Concentra Group Holdings Parent, Inc. maintains a generally strong solvency position with minimal debt levels in relation to its assets, capital, and equity, management should closely monitor the increasing trend in the financial leverage ratio to ensure it does not lead to excessive financial risk.

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Coverage ratios

The interest coverage ratio reflects Concentra Group Holdings Parent, Inc.'s ability to meet its interest obligations using its operating income. Looking at the data provided, we observe fluctuations in the interest coverage ratio throughout the year:

- As of March 31, 2024, the interest coverage ratio stood at 2.50, indicating that the company generated operating income 2.5 times greater than its interest expenses. This suggests a moderate ability to cover interest payments.

- By June 30, 2024, the interest coverage ratio improved to 2.61, indicating a slight enhancement in the company's ability to cover interest expenses with operating income.

- However, the ratio dropped to 2.38 as of September 30, 2024, reflecting a decrease in the company's ability to cover interest costs compared to the previous quarter.

- The year ended on a strong note with an interest coverage ratio of 4.36 as of December 31, 2024, signaling a significant improvement in the company's ability to handle interest obligations, with operating income 4.36 times greater than interest expenses.

Overall, Concentra Group Holdings Parent, Inc.'s interest coverage ratio showed variations throughout the year, with an upward trend towards the end of the year, indicating improved financial stability and a better ability to meet its interest payments effectively.