Catalyst Pharmaceuticals Inc (CPRX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.21 | 1.25 | 1.15 | 1.13 | 1.28 |
Catalyst Pharmaceuticals Inc has consistently maintained a debt-free capital structure over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at 0.00 for each year. This signifies that the company has not relied on debt to finance its operations or investments during this period.
However, the financial leverage ratio, which measures the proportion of a company's assets that are financed with debt, has shown some fluctuations. The financial leverage ratio decreased from 1.28 in 2019 to 1.13 in 2020, indicating a temporary decrease in the level of financial risk. But it then increased to 1.25 in 2022 before slightly dropping to 1.21 in 2023. This suggests that the company may have increased its reliance on debt financing in the short term.
Overall, Catalyst Pharmaceuticals Inc's solvency ratios portray a financially stable and sound position by not being burdened with debt, although the slight fluctuations in the financial leverage ratio may warrant some attention to ensure prudent management of financial risk going forward.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 24.72 | 110.52 | 28.06 | 16.89 |
The interest coverage ratio for Catalyst Pharmaceuticals Inc has fluctuated over the past five years. In 2023 and 2020, the interest coverage ratio was not provided in the table. In 2022, the ratio was 24.72, indicating that the company generated 24.72 times the amount of operating income to cover its interest expenses. This was a decrease from the exceptionally high value of 110.52 in 2021, reflecting a significant decline in the company's ability to cover its interest payments. However, the interest coverage ratio in 2022 was still relatively strong compared to 2019, where it stood at 16.89. Overall, while there has been some variability in the interest coverage ratio, the company has generally maintained a healthy ability to meet its interest obligations with its operating income.