Cencora Inc. (COR)

The solvency ratios of Cencora Inc. over the past four years reflect its ability to meet its long-term obligations. The Debt-to-assets ratio, which indicates the proportion of assets financed by debt, has decreased from 0.79 in 2020 to 0.08 in 2023, suggesting a significant reduction in the company's reliance on debt to fund its assets.

The Debt-to-capital ratio, which measures the proportion of a company's capital that is financed by debt, has also shown a declining trend from 1.04 in 2022 to 0.90 in 2023. This indicates an improvement in the company's capital structure and reduced reliance on debt financing.

The Debt-to-equity ratio, showing the proportion of a company's financing that comes from debt compared to equity, has fluctuated considerably, standing at 29.93 in 2021, and then notably decreasing to 9.17 in 2023. The fluctuation suggests potential changes in the company's financial leverage and capital structure during the period.

The Financial leverage ratio, reflecting the extent to which the company is using debt to finance its assets, has shown a significant decrease from 256.71 in 2021 to 119.84 in 2023, indicating a reduction in financial risk and increased ability to manage debt.

Overall, the decreasing trend in these solvency ratios indicates an improvement in Cencora Inc.'s long-term solvency and financial stability. The company seems to have taken measures to reduce its reliance on debt financing, which may contribute to a more favorable financial position in the long run.

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Coverage ratios

The interest coverage ratio for Cencora Inc. has shown a declining trend over the past four years. In September 2023, the interest coverage ratio stood at 11.73, which was lower than the previous year's ratio of 13.07. This indicates that the company's ability to cover its interest expenses from its earnings has weakened. However, when compared to the ratio of 3.10 at the end of 2020, the current ratio still reflects a significantly improved financial position.

A decreasing interest coverage ratio could potentially signal greater financial risk for the company, as it may struggle to meet its interest obligations with its current level of earnings. It would be prudent for stakeholders to further investigate the factors contributing to this declining trend to assess the company's long-term financial sustainability.