Edwards Lifesciences Corp (EW)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.07 | 0.07 | 0.08 | 0.09 |
| Debt-to-capital ratio | 0.08 | 0.09 | 0.09 | 0.12 | 0.13 |
| Debt-to-equity ratio | 0.09 | 0.10 | 0.10 | 0.13 | 0.14 |
| Financial leverage ratio | 1.41 | 1.43 | 1.46 | 1.58 | 1.56 |
The solvency ratios of Edwards Lifesciences Corp indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio has decreased steadily from 0.09 in 2019 to 0.06 in 2023. The decreasing trend suggests that the company has reduced its reliance on debt to finance its assets, which is a positive indicator of financial strength and stability.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has declined from 0.13 in 2019 to 0.08 in 2023. A lower ratio indicates that the company has a lower proportion of debt in its capital structure, which can be seen as a favorable trend in terms of financial risk management.
3. Debt-to-equity ratio: The debt-to-equity ratio has also shown a decreasing trend over the years, moving from 0.14 in 2019 to 0.09 in 2023. This indicates that the company's debt levels in relation to its equity have decreased, reflecting better financial health and lower risk of insolvency.
4. Financial leverage ratio: The financial leverage ratio has fluctuated over the years but remains relatively stable around 1.40-1.60. This ratio measures the proportion of a company's assets that are financed by debt, and the stability suggests a consistent approach to managing the company's leverage.
Overall, the declining trends in the debt-related ratios indicate that Edwards Lifesciences Corp has been effectively managing its debt levels and improving its solvency position over the years. These trends reflect positively on the company's ability to meet its long-term financial obligations and maintain financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 91.97 | 91.07 | 91.86 | 56.81 | 55.40 |
Based on the available data, Edwards Lifesciences Corp's interest coverage ratio for the fiscal year ending December 31, 2021, was notably high at 1,592.60. It indicates that the company's earnings before interest and taxes (EBIT) were significantly higher than its interest expenses, reflecting a robust ability to cover its interest payments. However, the absence of data for other years limits the ability to track the trend in interest coverage over time. To provide a comprehensive assessment of the company's financial health and debt payment capacity, it would be necessary to have data for additional years to observe any patterns or fluctuations in the interest coverage ratio.