DaVita HealthCare Partners Inc (DVA)
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 | 16.00 | 23.76 | 22.66 | 12.28 | 8.11 |
DaVita Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations and sustain its operations.
1. Debt-to-assets ratio: DaVita's debt-to-assets ratio has fluctuated over the past five years, ranging from 0.54 to 0.61, with the most recent ratio at 0.59. This ratio suggests that, on average, approximately 59% of DaVita's assets are financed by debt, indicating a moderate reliance on debt to support its operations and investments.
2. Debt-to-capital ratio: DaVita's debt-to-capital ratio has also experienced fluctuations, ranging from 0.81 to 0.94 over the same period. The latest ratio stands at 0.90, indicating that debt represents around 90% of the company's total capital structure. This implies that DaVita relies significantly on debt financing to fund its operations and growth initiatives.
3. Debt-to-equity ratio: DaVita's debt-to-equity ratio has shown significant variation over the past five years, ranging from 4.35 to 14.42. The most recent ratio is reported at 9.37, indicating that the company has a relatively high level of debt compared to its equity, with debt representing approximately 937% of equity. This may suggest higher financial risk due to the elevated debt levels relative to shareholder equity.
4. Financial leverage ratio: DaVita's financial leverage ratio, which measures the proportion of assets financed by debt relative to equity, has also displayed variability, with values ranging from 8.11 to 23.76. The current ratio at 16.00 indicates that DaVita utilizes a significant amount of debt compared to equity to finance its assets, reflecting a higher level of financial risk.
In summary, DaVita Inc's solvency ratios reveal a fluctuating pattern in its debt levels and capital structure over the past five years. The company shows a moderate to high reliance on debt financing, which may pose financial risks that investors and stakeholders should monitor closely.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.06 | 3.67 | 6.07 | 5.37 | 3.56 |
DaVita Inc's interest coverage ratio has shown fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In 2023, DaVita had an interest coverage ratio of 4.09, indicating an improvement from the previous year. This suggests that DaVita's operating income was able to cover its interest expenses 4.09 times over in 2023.
Comparing this to the ratios from the prior years:
- In 2022, the interest coverage was 3.75, showing a slight increase in 2023.
- In 2021, the ratio was notably higher at 6.30, indicating a stronger ability to cover interest expenses.
- In 2020 and 2019, the ratios were 5.63 and 3.98 respectively, which also indicate reasonable coverage of interest obligations.
Overall, DaVita's interest coverage ratio has fluctuated over the past five years, but in 2023, the company showed an improvement in its ability to cover interest expenses with its operating income. It is important for investors and creditors to monitor this ratio to assess DaVita's financial health and ability to meet its debt obligations.