Embecta Corp (EMBC)

To analyze Embecta Corp's solvency ratios based on the provided data:

1. Debt-to-assets ratio:
- The debt-to-assets ratio indicates the proportion of a company's assets financed by debt. Embecta Corp's debt-to-assets ratio has decreased from 1.47 in 2022 to 1.31 in 2023, and further to 1.22 in 2024. This trend suggests that the company has been reducing its reliance on debt to finance its assets, which may indicate improved financial stability.

2. Debt-to-capital ratio:
- The debt-to-capital ratio measures the proportion of a company's capital that is funded by debt. Embecta Corp's debt-to-capital ratio has shown a similar decreasing trend, declining from 2.26 in 2022 to 2.06 in 2023, and further to 1.89 in 2024. This decline signals that the company has been reducing its debt levels relative to its total capital, which could imply enhanced solvency and lower financial risk.

3. Debt-to-equity ratio:
- The debt-to-equity ratio compares a company's total debt to its total equity, providing insight into the level of financial leverage. Unfortunately, the data for the debt-to-equity ratio is not available for Embecta Corp, so a specific analysis regarding this metric cannot be provided.

4. Financial leverage ratio:
- The financial leverage ratio measures the extent to which a company uses debt to finance its operations. However, the data for the financial leverage ratio of Embecta Corp is not available for all three years, preventing a detailed analysis of this metric.

In conclusion, based on the available solvency ratios data, Embecta Corp appears to be gradually decreasing its reliance on debt financing, which may improve its financial stability and reduce its financial risk over the years. However, a complete solvency analysis would require additional financial ratios and information to provide a more comprehensive assessment of the company's solvency position.

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Coverage ratios

Embecta Corp's interest coverage has shown a decreasing trend over the past three years. In September 2022, the interest coverage ratio was at its highest level of 96.75, indicating that the company's earnings before interest and taxes (EBIT) were significantly higher than its interest expense. However, by September 2024, the interest coverage ratio had decreased to 24.17, suggesting that the company's ability to cover its interest payments with its operating profits had declined.

A higher interest coverage ratio is generally preferred as it signifies a company's ability to meet its interest obligations comfortably. The decreasing trend in Embecta Corp's interest coverage may raise concerns about its financial health and ability to manage its debt obligations effectively. It is important for stakeholders to closely monitor this ratio and assess the company's overall financial stability.