The Cooper Companies, Inc. Common Stock (COO)

The solvency ratios of The Cooper Companies, Inc. Common Stock indicate the firm's ability to meet its long-term financial obligations and the extent of its leverage.

1. Debt-to-assets ratio: This ratio has fluctuated over the past five years, ranging from 0.15 to 0.22. The decreasing trend from 2022 to 2024 suggests that the company has been reducing its reliance on debt to finance its assets.

2. Debt-to-capital ratio: The trend in this ratio has been relatively stable, hovering around 0.25 over the years. This indicates that a quarter of the company's capital structure is funded by debt, with the remaining financed by equity.

3. Debt-to-equity ratio: The company's debt-to-equity ratio has shown some variation, from 0.20 to 0.36. The decrease in this ratio in 2024 compared to 2023 suggests that the firm has reduced its financial leverage and reliance on debt financing relative to shareholders' equity.

4. Financial leverage ratio: The financial leverage ratio has fluctuated significantly over the period under review, ranging from 1.38 to 1.76. A decreasing trend in this ratio indicates a reduction in the company's financial risk and leverage, while an increasing trend suggests higher financial leverage.

Overall, the solvency ratios of The Cooper Companies, Inc. Common Stock demonstrate a mixed performance in managing its debt levels and leverage over the years, with efforts to reduce reliance on debt seen in recent years. It is essential for the company to maintain a prudent balance between debt and equity financing to ensure financial stability and sustainability in the long term.

---

Coverage ratios

The interest coverage ratio for The Cooper Companies, Inc. Common Stock has exhibited varying trends over the past five years. In fiscal year 2024, the interest coverage ratio stood at 6.17, indicating that the company generated sufficient operating income to cover its interest expenses 6.17 times over. This represents a slight increase from the previous year when the ratio was 4.92.

Looking back to fiscal year 2023, the interest coverage ratio was 9.29, reflecting a stronger ability to meet interest obligations compared to both 2024 and 2022. The ratio notably peaked in fiscal year 2021 at 22.28, indicating robust profitability and the company's ability to comfortably cover its interest expenses more than 22 times over.

In contrast, fiscal year 2020 saw the interest coverage ratio decrease to 8.24, although it remained robust relative to the industry average. Overall, the company's interest coverage ratio has demonstrated fluctuation, with a general trend of fluctuation in recent years. Analysis of the underlying drivers behind these fluctuations would provide further insight into the company's financial health and stability.