Enovis Corp (ENOV)

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 0.10 0.09 0.09 0.07 0.01 0.00 0.00 0.19 0.24 0.20 0.21 0.18 0.30 0.31 0.31 0.34 0.31 0.42 0.41 0.38
Debt-to-capital ratio 0.12 0.10 0.10 0.08 0.01 0.00 0.00 0.26 0.31 0.26 0.27 0.26 0.38 0.39 0.40 0.43 0.40 0.57 0.57 0.53
Debt-to-equity ratio 0.14 0.11 0.12 0.08 0.01 0.00 0.00 0.36 0.45 0.35 0.37 0.35 0.62 0.64 0.66 0.76 0.66 1.34 1.32 1.13
Financial leverage ratio 1.32 1.28 1.29 1.25 1.24 1.30 1.29 1.84 1.84 1.74 1.75 1.90 2.07 2.10 2.12 2.27 2.15 3.22 3.20 2.94

The solvency ratios of Enovis Corp provide insights into the company's ability to meet its long-term financial obligations. Over the past eight quarters, the debt-to-assets ratio has shown a relatively stable trend, ranging from 0.06 to 0.10. This indicates that Enovis Corp has maintained a conservative level of debt relative to its total assets.

Similarly, the debt-to-capital and debt-to-equity ratios have also displayed relatively consistent patterns, with values fluctuating within a narrow range. These ratios suggest that Enovis Corp has been effectively managing its capital structure by balancing debt and equity in its financing mix.

The financial leverage ratio, which measures the extent to which the company relies on debt to finance its assets, has decreased gradually over the quarters. This shows that Enovis Corp has been reducing its reliance on debt for funding its operations, which can enhance its financial stability and reduce solvency risk.

Overall, Enovis Corp's solvency ratios reflect a prudent approach to managing its financial obligations and capital structure, indicating a solid foundation for long-term financial sustainability.

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 -1.36 -0.87 -3.98 -0.02 1.95 0.89 5.32 3.05 2.42 -6.58 -0.80 -1.12 -1.25 1.30 1.05 -2.46 -3.15 -3.72 -4.53 1.58

The interest coverage ratio for Enovis Corp has shown significant fluctuations over the past eight quarters. In Q4 2023, the interest coverage ratio was -2.45, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses by a significant margin. This suggests a higher financial risk for the company as it struggles to meet its interest obligations.

The negative trend in the interest coverage ratio continued in the previous quarters, with Q3 2023, Q2 2023, and Q1 2023 ratios at -11.83, -11.27, and -11.90 respectively. These consistent negative values signify a persistent inability of the company to generate enough operating income to cover its interest expenses, raising concerns about its financial health and ability to service its debt obligations.

Comparing these figures to the earlier quarters, there was a noticeable improvement in Q3 and Q2 2022 where the interest coverage ratios were 2.13 and 3.55 respectively, indicating that the company was able to comfortably cover its interest payments during that period. However, this positive trend reversed in Q4 2022 with a ratio of 3.77, which is on the lower end of the spectrum.

Overall, Enovis Corp's interest coverage ratio has been highly volatile and has been mostly inadequate to meet its interest obligations in the recent quarters, suggesting potential financial distress and highlighting the need for the company to address its profitability and debt management strategies.