Catalyst Pharmaceuticals Inc (CPRX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.17 | 1.21 | 1.25 | 1.15 | 1.13 |
Based on the provided data for Catalyst Pharmaceuticals Inc:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Catalyst Pharmaceuticals Inc has consistently maintained a Debt-to-assets ratio of 0.00 from 2020 to 2024, suggesting that the company does not rely on debt to fund its assets and operates with a low level of financial leverage.
2. Debt-to-capital ratio: This ratio shows the extent to which the company's capital structure is made up of debt. Catalyst Pharmaceuticals Inc also demonstrates a Debt-to-capital ratio of 0.00 across the years, indicating that the company's capital is primarily derived from sources other than debt, such as equity or retained earnings.
3. Debt-to-equity ratio: The Debt-to-equity ratio measures the financial leverage of a company by comparing its total debt to shareholders' equity. Catalyst Pharmaceuticals Inc's Debt-to-equity ratio remains at 0.00 throughout the observed years, implying a balanced capital structure with minimal reliance on external debt financing.
4. Financial leverage ratio: This ratio reflects the company's financial risk and is calculated as the ratio of total assets to shareholders' equity. Catalyst Pharmaceuticals Inc shows a stable Financial leverage ratio ranging from 1.13 to 1.25 over the period from 2020 to 2024. This indicates that the company's assets are primarily funded by equity rather than debt and suggests a conservative approach to financial management.
Overall, the consistent low values of the solvency ratios for Catalyst Pharmaceuticals Inc reflect a sound financial position with little reliance on debt financing, indicating a healthy balance between debt and equity in the company's capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 24.72 | 110.52 | 28.06 |
Interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio suggests a stronger financial position and lower risk of default.
Analyzing Catalyst Pharmaceuticals Inc's interest coverage ratio over the years, we observe significant fluctuations. In December 2020, the interest coverage ratio was reported at a healthy level of 28.06, indicating the company's ability to cover its interest expenses approximately 28 times.
By December 2021, Catalyst Pharmaceuticals Inc's interest coverage ratio improved substantially to 110.52, reflecting a significant increase in its ability to cover interest expenses, which may indicate improved profitability or lower interest costs.
However, in December 2022, the interest coverage ratio decreased to 24.72, showing a reduced ability to cover interest expenses compared to the previous year. This decline could be a cause for concern, potentially signaling increased interest expenses relative to operating income.
The absence of data for December 2023 and December 2024 makes it challenging to evaluate Catalyst Pharmaceuticals Inc's interest coverage during those periods. It is crucial for investors and stakeholders to monitor the company's interest coverage ratio closely to assess its financial health and ability to meet its debt obligations.