Edwards Lifesciences Corp (EW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.31 | 1.41 | 1.43 | 1.46 | 1.58 |
Edwards Lifesciences Corp demonstrates a strong financial position with consistently low solvency ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from 2020 to 2024, indicating that the company has no debt compared to its total assets, capital, and equity.
Additionally, the Financial leverage ratio has shown a decreasing trend from 1.58 in 2020 to 1.31 in 2024. This reduction signifies that the company's reliance on debt financing has decreased over the years, leading to lower financial risk and increased stability in its capital structure.
Overall, the solvency ratios of Edwards Lifesciences Corp suggest a conservative financial management approach and a healthy balance sheet with minimal debt obligations, positioning the company well to weather economic downturns and capitalize on growth opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 79.19 | 87.16 | 93.42 | 91.95 | 59.42 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations on its outstanding debt. Edwards Lifesciences Corp has shown a consistently strong interest coverage over the years, which is a positive indicator of its financial health.
As per the data provided, the interest coverage ratio has increased from 59.42 in December 2020 to 79.19 in December 2024. This upward trend suggests that the company's earnings before interest and taxes (EBIT) are sufficiently high to cover its interest expenses by an increasing margin over the years.
The interest coverage ratios of 91.95 in December 2021, 93.42 in December 2022, and 87.16 in December 2023 also demonstrate the company's ability to comfortably meet its interest obligations. A ratio above 1 indicates that Edwards Lifesciences Corp is generating enough operating income to cover its interest expenses, with higher ratios reflecting a lower financial risk associated with debt repayment.
Overall, the consistent upward trend in interest coverage ratios for Edwards Lifesciences Corp is encouraging, showing the company's strong financial position and ability to manage its debt obligations effectively.