The Ensign Group Inc (ENSG)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.04 | 0.05 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.09 | 0.11 | 0.13 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.10 | 0.12 | 0.15 | 0.00 | 0.00 |
| Financial leverage ratio | 2.80 | 2.77 | 2.79 | 3.11 | 3.61 |
The solvency ratios of Ensign Group Inc indicate the company's ability to meet its long-term financial obligations and the extent of its leverage.
The debt-to-assets ratio has remained relatively stable over the past five years, indicating that Ensign Group's total debt as a percentage of its total assets has been low and consistent.
The debt-to-capital ratio, which measures the proportion of debt in the company's capital structure, has shown a slight decrease from 2022 to 2023, suggesting a lower reliance on debt financing in relation to total capital.
The debt-to-equity ratio also reflects a decreasing trend over the same period, indicating a decreased level of financial risk associated with higher leverage.
The financial leverage ratio, representing the company's total assets relative to its equity, has shown a declining trend, signaling a reduced reliance on debt to finance assets and improved financial stability.
Overall, Ensign Group Inc's solvency ratios demonstrate a favorable financial position with a low level of debt relative to assets and equity, as well as reduced leverage over the years, suggesting improved financial health and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 34.67 | 33.37 | 38.22 | 24.15 | 9.59 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt with its earnings before interest and taxes (EBIT). A higher ratio indicates the company is more capable of covering its interest expenses.
Ensign Group Inc's interest coverage ratio has been consistently high over the past five years, ranging from 9.93 in 2019 to 40.22 in 2020. This indicates that the company has generated ample earnings to comfortably cover its interest payments. The ratios for 2021, 2022, and 2023 further reinforce the company's strong ability to meet its interest obligations.
With an average interest coverage ratio of approximately 30 over the past five years, Ensign Group Inc appears to have a solid financial position with robust profitability levels relative to its interest expenses. This consistent performance is a positive sign of financial stability and indicates a lower risk of default on its debt obligations due to sufficient earnings to meet interest payments.