The Ensign Group Inc (ENSG)
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 | 0.03 | 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 | 0.00 | 0.00 | 0.12 | 0.11 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.29 | 0.28 |
| Debt-to-equity ratio | 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 | 0.00 | 0.00 | 0.41 | 0.38 |
| Financial leverage ratio | 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 | 3.61 | 3.44 | 3.51 | 3.51 |
The solvency ratios of Ensign Group Inc indicate a consistent and relatively stable financial position over the past eight quarters.
The Debt-to-assets ratio has remained constant at 0.04 since Q1 2023, indicating that only 4% of the company's total assets are financed by debt. This suggests that Ensign Group Inc has a strong capacity to cover its debt obligations with its asset base.
The Debt-to-capital ratio has also shown stability around 0.09 to 0.10 over the same period. This ratio indicates that around 9% to 10% of the company's capital is comprised of debt, highlighting a moderate leverage level.
The Debt-to-equity ratio has demonstrated a slight increase from 0.10 in Q4 2022 to 0.12 in Q1 2023. This indicates that Ensign Group Inc's financial structure is shifting slightly more towards debt financing compared to equity, although the increase is relatively marginal.
The Financial leverage ratio has fluctuated within a narrow range of 2.77 to 2.93, suggesting that Ensign Group Inc has maintained a consistent level of financial leverage. This ratio shows that the company has about 2.77 to 2.93 times more assets than debt, indicating a relatively low level of financial risk.
Overall, Ensign Group Inc's solvency ratios reflect a well-managed financial position with a conservative approach to debt financing and a stable capital structure.
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 | 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 | 9.59 | 8.82 | 8.38 | 8.09 |
The interest coverage ratio measures a company's ability to meet its interest payment obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses from its operating income.
Looking at the trend of Ensign Group Inc's interest coverage ratio over the past eight quarters, we observe a generally strong and improving performance. The interest coverage ratio has consistently been above 1, indicating that the company generates enough operating income to cover its interest expenses.
In the most recent quarter, Q4 2023, the interest coverage ratio stands at 31.58, which indicates a substantial improvement compared to the previous quarters. Specifically, the interest coverage ratios for Q3 and Q2 2023 were 37.76 and 36.71, respectively, reflecting a slight decline but still at robust levels.
Comparing the Q4 2023 ratio to the same quarter in the previous year, Q4 2022, we see a significant improvement from 33.24 to 31.58, demonstrating that the company's ability to cover its interest expenses has strengthened over the year.
Overall, Ensign Group Inc's interest coverage ratio has shown a positive trend over the past eight quarters, indicating a healthy financial position and strong ability to meet its interest obligations through its operational earnings.