Enovis Corp (ENOV)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.84 | 1.32 | 1.24 | 1.84 | 2.07 |
Enovis Corp's solvency ratios indicate a strong financial position with consistently low debt levels across all years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 for the years 2020 through 2024, suggesting that the company has no significant debt in relation to its assets, capital, or equity.
Additionally, the Financial leverage ratio has fluctuated over the years, starting at 2.07 in 2020 and decreasing to 1.24 by 2022 before slightly increasing to 1.84 in 2024. This ratio measures the proportion of a company's total assets that is financed by debt. The downward trend from 2020 to 2022 indicates a reduction in reliance on debt financing, which may have positive implications for the company's financial risk.
Overall, the consistent low debt levels and the improving trend in the financial leverage ratio signify Enovis Corp's strong solvency and financial stability over the analyzed period. The company appears to have a healthy balance sheet structure with minimal debt obligations relative to its financial resources.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -13.59 | -2.39 | 0.95 | -1.27 | -0.63 |
Interest coverage ratio indicates the company's ability to meet its interest obligations using its operating income. A higher ratio typically reflects better financial health.
Looking at Enovis Corp's interest coverage over the past five years, there seems to be a concerning trend. The ratio was negative in three out of the five years, with significant declines in 2024.
In 2020 and 2021, Enovis had negative interest coverage ratios of -0.63 and -1.27, respectively. This suggests that the company's operating income was not sufficient to cover its interest expenses during these periods.
Although there was a slight improvement in 2022 with a ratio of 0.95, indicating that operating income could cover interest expenses, the ratio deteriorated significantly in 2023 and 2024. The interest coverage ratio of -2.39 in 2023 and a substantial -13.59 in 2024 raise serious concerns about the company's ability to meet its interest obligations from its operating income.
Overall, Enovis Corp's interest coverage ratios indicate a consistent struggle to generate enough operating income to cover its interest expenses, posing a risk in terms of financial stability and potential debt default.