DaVita HealthCare Partners Inc (DVA)
Solvency ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 16.00 | 14.12 | 16.67 | 20.26 | 23.76 | 31.84 | 28.28 | 20.25 | 22.66 | 15.34 | 13.94 | 14.14 | 12.28 | 10.82 | 8.96 | 9.03 | 8.11 | 7.53 | 4.92 | 5.83 |
The solvency ratios of DaVita Inc provide insights into the company's ability to meet its long-term financial obligations and remain financially stable.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. DaVita Inc's debt-to-assets ratio has remained relatively stable over the quarters, ranging from 0.58 to 0.62. This indicates that around 58% to 62% of the company's assets are funded by debt, with a slight downward trend recently.
2. Debt-to-capital ratio: This ratio evaluates the extent to which a company is leveraged through debt. DaVita Inc's debt-to-capital ratio has also shown consistency, hovering between 0.89 and 0.95. The company finances around 89% to 95% of its capital structure using debt, with a gradual increase observed over the quarters.
3. Debt-to-equity ratio: This ratio indicates the degree of leverage in a company's capital structure in terms of equity and debt. DaVita Inc's debt-to-equity ratio has fluctuated significantly, ranging from 8.20 to 19.62. There was a peak in Q3 2022, suggesting higher reliance on debt during that period, followed by a decreasing trend in more recent quarters.
4. Financial leverage ratio: This ratio measures how much debt a company is using to finance its assets relative to its equity. DaVita Inc's financial leverage ratio shows a downward trend from 31.84 in Q3 2022 to 14.12 in Q3 2023. This implies a reduction in the company's reliance on debt to fund its assets, indicating improved financial stability.
Overall, DaVita Inc's solvency ratios demonstrate a mix of stability and fluctuations in its long-term debt management. The company has shown some improvements in reducing its reliance on debt, as seen in the decreasing financial leverage ratio. However, the variability in the debt-to-equity ratio suggests fluctuations in the company's leverage strategy that may require further monitoring and analysis to ensure sustainable financial health.
Coverage ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.02 | 3.64 | 3.17 | 3.42 | 3.75 | 4.49 | 5.43 | 5.80 | 6.30 | 6.54 | 6.38 | 5.92 | 7.73 | 2.91 | 3.18 | 3.83 | 3.56 | 11.24 | 5.65 | 3.85 |
Based on the data provided for DaVita Inc's interest coverage ratios over the past eight quarters, we observe fluctuations in the company's ability to cover its interest expenses.
The interest coverage ratio indicates DaVita's capacity to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio suggests that the company has more than enough earnings to cover its interest payments, signaling financial strength and stability. Conversely, a lower ratio may indicate potential financial distress or difficulties in meeting interest obligations.
Over the period in question, DaVita's interest coverage ratio ranged from a low of 3.17 in Q2 2023 to a high of 5.80 in Q1 2022. The trend shows a general decline in the ratio, dropping from above 5.0 in early 2022 to around 3.0 in mid-2023, before slightly recovering in the most recent quarter.
The downward trend in the interest coverage ratio raises some concerns about DaVita's ability to comfortably cover its interest expenses with its operating earnings. Investors and creditors may closely monitor this trend for any potential indication of deteriorating financial health or increased risk associated with the company's debt servicing capabilities.
Further analysis of the underlying reasons for these fluctuations in the interest coverage ratio, such as changes in EBIT, interest expenses, or overall profitability, would provide additional insights into DaVita's financial performance and sustainability.