Cencora Inc. (COR)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.06 | 0.07 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.11 | 0.11 | 0.12 | 0.13 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 |
| Debt-to-capital ratio | 0.86 | 0.82 | 0.79 | 0.82 | 0.89 | 0.86 | 0.94 | 1.04 | 1.05 | 0.95 | 0.89 | 0.96 | 0.97 | 0.99 | 1.05 | 1.24 | 1.39 | 0.48 | 0.50 | 0.55 |
| Debt-to-equity ratio | 5.90 | 4.50 | 3.86 | 4.59 | 7.94 | 6.06 | 16.57 | — | — | 20.69 | 8.44 | 26.55 | 28.58 | 175.10 | — | — | — | 0.94 | 1.01 | 1.23 |
| Financial leverage ratio | 103.88 | 72.17 | 58.97 | 70.96 | 119.84 | 89.18 | 208.62 | — | — | 254.90 | 104.14 | 238.37 | 256.71 | 1,473.34 | — | — | — | 10.57 | 11.71 | 13.54 |
The solvency ratios of Cencora Inc. show the company's ability to meet its long-term financial obligations and the extent to which its operations are financed by debt.
1. Debt-to-assets ratio: This ratio remained relatively stable around 0.07 throughout the periods analyzed, indicating that the company's debt level as a percentage of its total assets was moderate and consistent.
2. Debt-to-capital ratio: The trend in this ratio fluctuated but generally showed an increasing trend, reaching a peak of 1.39 in Sep 30, 2020. This indicates that the company relied more on debt to finance its operations and investments over time.
3. Debt-to-equity ratio: This ratio fluctuated significantly, ranging from 3.86 to 175.10, with the highest peak in Mar 31, 2021. The sharp fluctuations suggest varying levels of leverage and equity financing in the capital structure, indicating potential risk associated with high debt levels.
4. Financial leverage ratio: This ratio also showed significant fluctuations, ranging from 58.97 to 1473.34, with the highest peak in Mar 31, 2021. The high values suggest that the company had a high level of financial leverage, increasing the risk of financial distress.
In conclusion, Cencora Inc.'s solvency ratios indicate a mix of moderate to high reliance on debt financing, significant fluctuations in leverage ratios, and varying levels of capital structure composition over the analyzed periods. It is important for stakeholders to closely monitor these ratios to assess the company's financial health and risk exposure.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 10.10 | 9.89 | 9.92 | 10.48 | 10.22 | 10.56 | 9.96 | 11.45 | 10.94 | 11.27 | 14.68 | 18.38 | 26.86 | -99.51 | -108.17 | -118.45 | -128.38 | 29.14 | 29.25 | 23.39 |
The interest coverage ratio for Cencora Inc. has fluctuated over the periods shown in the table. Generally, a higher interest coverage ratio indicates the company's ability to meet interest obligations on its debt.
From December 2019 to March 2022, the interest coverage ratio exhibited a positive trend, reaching relatively high levels, with the ratio peaking at 26.86 in March 2022. This suggests that during this period, the company had a strong ability to cover its interest expenses with its operating income.
However, starting in September 2022, there was a noticeable decline in the interest coverage ratio. The ratio dropped significantly into negative territory in September 2021 and continued to be negative until March 2022. This is a red flag as it indicates that the company was not generating enough operating income to cover its interest expenses during these periods.
Following the negative trend, the interest coverage ratio turned positive again from December 2022 to September 2024, ranging from 9.92 to 11.45. Although the ratio did not reach the exceptionally high levels seen earlier, it did indicate an improvement in the company's ability to cover its interest payments compared to the previous negative periods.
In conclusion, while the company experienced fluctuations in its interest coverage ratio over the periods analyzed, it is crucial to monitor the trend closely to ensure sustained financial health and the ability to meet its debt obligations.