The Ensign Group Inc (ENSG)
Solvency ratios
| Dec 31, 2024 | 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 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.00 | 0.00 | 0.05 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.00 | 0.00 | 0.13 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.13 | 0.00 | 0.00 | 0.15 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.54 | 2.65 | 2.68 | 2.73 | 2.80 | 2.80 | 2.85 | 2.93 | 2.77 | 2.77 | 2.79 | 2.84 | 2.79 | 2.87 | 2.85 | 2.87 | 3.11 | 3.22 | 3.48 | 3.54 |
The Ensign Group Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
The debt-to-assets ratio measures the proportion of the company's assets financed by debt. The ratio remained relatively low and stable below 0.1, indicating that The Ensign Group Inc has a minimal reliance on debt to fund its operations and investments. However, there was a slight increase at the end of 2021 and 2022, suggesting a slightly higher level of debt relative to its total assets.
2. Debt-to-capital ratio:
The debt-to-capital ratio gauges the extent of a company's capital structure that is financed by debt. The trend shows a slight increase in the ratio from 0.07 at the end of 2024 compared to 0.00 at the beginning of the period. This indicates that the company has gradually increased its reliance on debt in its capital structure, albeit still maintaining a relatively healthy balance.
3. Debt-to-equity ratio:
The debt-to-equity ratio evaluates the company's leverage by comparing its debt to equity. The Ensign Group Inc's ratio has also shown a gradual increase over the period, reaching 0.08 at the end of 2024. This increase may signify a higher level of financial risk compared to the earlier periods.
4. Financial leverage ratio:
This ratio indicates the extent to which the company has used debt to finance its assets. The downward trend from 3.54 in March 2020 to 2.54 in December 2024 suggests that the company has been reducing its reliance on debt to support its operations. A lower financial leverage ratio signifies a stronger financial position and lower risk of insolvency.
Overall, The Ensign Group Inc's solvency ratios reflect a conservative approach towards debt financing, with a gradual but controlled increase in leverage over time. It is essential for stakeholders to monitor these ratios to assess the company's long-term financial health and ability to fulfill its obligations.
Coverage ratios
| Dec 31, 2024 | 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 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 44.35 | 37.34 | 36.67 | 36.37 | 34.67 | 40.09 | 38.53 | 34.81 | 33.37 | 32.79 | 33.28 | 36.63 | 38.22 | 37.80 | 36.16 | 31.72 | 24.15 | 17.68 | 13.56 | 10.92 |
The interest coverage ratio measures a company's ability to meet interest payments on its debt obligations. It indicates the company's capacity to pay its interest expenses using its operating income. In the case of The Ensign Group Inc, the interest coverage ratio has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024.
Starting at 10.92 on March 31, 2020, the interest coverage ratio has consistently improved, reaching a peak of 44.35 on December 31, 2024. This indicates that The Ensign Group Inc's ability to cover its interest payments with its operating income has strengthened over time.
The increasing trend in the interest coverage ratio suggests that the company's financial health has been improving, as it has been more capable of servicing its debt obligations. A higher interest coverage ratio is typically viewed positively by investors and creditors, as it signifies lower financial risk and greater stability for the company.
Overall, the rising interest coverage ratio for The Ensign Group Inc reflects a positive trajectory in its financial performance and its ability to manage its debt obligations effectively over the analyzed period.