Embecta Corp (EMBC)

Embecta Corp's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has fluctuated slightly over the period, ranging from 1.27 to 1.52, with a notable decline in the most recent quarter. This ratio suggests that a significant portion of the company's assets are financed through debt.

The debt-to-capital ratio has displayed a similar trend, ranging from 1.99 to 3.22, indicating a higher reliance on debt for financing its operations compared to equity. The significant increase in this ratio in the last quarter suggests a potentially elevated level of financial risk associated with the company's capital structure.

The absence of data for the debt-to-equity ratio limits a comprehensive assessment of the company's leverage position. However, the declining trend in the debt ratios may point towards a relatively lower level of debt compared to equity.

The financial leverage ratio, which provides insight into the proportion of debt in the company's capital structure, was reported only for the last period, showing a value of 1.34. This ratio indicates that Embecta Corp has a moderate level of financial leverage, implying a balanced mix of debt and equity in its funding sources.

Overall, while the company's solvency ratios fluctuate, suggesting varying degrees of leverage, further analysis incorporating additional financial metrics and industry benchmarks would provide a more comprehensive understanding of Embecta Corp's financial health.

---

Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

Based on the data provided for Embecta Corp, the interest coverage ratios fluctuated over the six periods presented. The ratios were 20.25, 25.17, 17.00, 99.67, 40.15, and 19.01 for December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.

The interest coverage ratio was highest in March 31, 2023, at 99.67, indicating that the company had a strong ability to cover its interest expenses with its operating income during that period. However, there was a significant decline in the ratio in the subsequent period ending June 30, 2023, to 17.00, which might raise concerns about the company's ability to meet its interest obligations.

Overall, Embecta Corp's interest coverage ratios have shown variability over the periods analyzed, and it would be important to monitor this ratio consistently to assess the company's ability to handle its interest payments in the future.