Embecta Corp (EMBC)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.22 | 1.26 | 1.33 | 1.31 | 1.31 | 1.27 | 1.32 | 1.33 | 1.47 | 1.52 | 1.68 | 0.00 |
| Debt-to-capital ratio | 1.89 | 1.92 | 1.94 | 1.99 | 2.06 | 2.03 | 2.06 | 2.10 | 2.26 | 2.13 | 3.22 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | 1.34 |
The solvency ratios of Embecta Corp indicate its ability to meet its long-term debt obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of assets financed by debt. Embecta Corp's debt-to-assets ratio has been fluctuating between 1.22 to 1.68 over the past few quarters, indicating a moderate level of leverage. A ratio above 1 suggests that the company has more debt than assets.
2. Debt-to-capital ratio: This ratio measures the company's financial leverage by comparing its total debt to its total capital (debt + equity). Embecta Corp's debt-to-capital ratio has ranged from 1.89 to 3.22, indicating that the company is mainly financed by debt rather than equity. The increasing trend in this ratio may signify a higher financial risk as the company relies more on debt financing.
3. Debt-to-equity ratio: The data for this ratio is not available for analysis, which limits the assessment of the company's reliance on debt compared to equity for financing its operations.
4. Financial leverage ratio: This ratio indicates the extent to which a company is using debt to finance its assets. Embecta Corp's financial leverage ratio has remained constant at 1.34 for the most recent quarter, suggesting that the company has a balanced capital structure with a moderate level of leverage.
Overall, based on the solvency ratios analyzed, Embecta Corp demonstrates a moderate level of leverage in its capital structure, with a significant reliance on debt financing. It is essential for the company to carefully manage its debt levels to ensure long-term financial stability and meet its debt obligations effectively.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 24.17 | 18.91 | 18.39 | 20.25 | 25.17 | 17.00 | 99.67 | 40.15 | 19.01 |
Embecta Corp's interest coverage ratio has fluctuated over the past few quarters, with values ranging from 17.00 to 99.67. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a better ability to cover interest expenses.
In the latest quarter, the interest coverage ratio was 24.17, an improvement from the previous quarter's 18.91. This indicates that during the current period, Embecta Corp's operating income was 24.17 times the amount of its interest expense. This is a positive sign, as it shows the company is comfortably able to cover its interest payments.
However, it is worth noting that the interest coverage ratio was exceptionally high in the first quarter of 2023 at 99.67, which may have been influenced by certain factors such as a temporary boost in operating income or unusually low interest expenses during that period.
Overall, while Embecta Corp's interest coverage ratio has shown some volatility, the recent improvements suggest that the company has been effectively managing its interest payments relative to its operating income. It would be beneficial for stakeholders to continue monitoring this ratio to ensure the company's ongoing financial health.