The Cooper Companies Inc. (COO)

The solvency ratios of Cooper Companies, Inc. reflect its ability to meet its long-term financial obligations.

The debt-to-assets ratio has shown a fluctuating trend over the past five years, decreasing from 0.29 in 2019 to 0.15 in 2021, before increasing to 0.24 in 2022 and then decreasing again to 0.22 in 2023. This indicates that the company's reliance on debt in relation to its total assets has seen some volatility.

Similarly, the debt-to-capital ratio has exhibited a similar pattern, decreasing from 0.33 in 2019 to 0.18 in 2021, then increasing to 0.28 in 2022, and finally dropping to 0.25 in 2023. This suggests fluctuations in the proportion of the company's capital provided by debt.

The debt-to-equity ratio has also shown variability, declining from 0.50 in 2019 to 0.21 in 2021, before rising again to 0.39 in 2022 and then dropping to 0.34 in 2023. This implies changes in the degree to which the company's assets are financed by debt relative to equity.

The financial leverage ratio has followed a comparable trend, decreasing from 1.73 in 2019 to 1.38 in 2021, then increasing to 1.60 in 2022, and finally declining to 1.54 in 2023. This indicates fluctuations in the company's reliance on debt in its capital structure.

Overall, the fluctuating nature of these solvency ratios suggests that Cooper Companies, Inc. has experienced changes in its debt-level management and capital structure over the past five years. Monitoring these ratios will be crucial for stakeholders to assess the company's long-term financial stability and risk management.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest payments.

Cooper Companies, Inc.'s interest coverage ratio has fluctuated over the past five years. In 2023, the interest coverage ratio was 5.06, declining from 8.86 in 2022 and 21.90 in 2021. This decrease suggests a potential decrease in the company's ability to cover its interest expenses using its operating income.

Analyzing the trend over the last five years, it is evident that the company's interest coverage has been somewhat volatile, with significant fluctuations. While the 2021 ratio of 21.90 indicated strong capacity to cover interest payments, the subsequent decline in 2022 and 2023 raises attention to potential factors affecting the company's ability to service its debt.

It is important for stakeholders to closely monitor this ratio, as a declining trend could indicate increasing financial risk for the company, potentially impacting its creditworthiness and financial stability. Further context and analysis of the company's financial performance and debt structure are necessary to fully evaluate the implications of the fluctuating interest coverage ratio.