Edwards Lifesciences Corp (EW)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.31 | 1.36 | 1.36 | 1.37 | 1.41 | 1.41 | 1.41 | 1.45 | 1.43 | 1.39 | 1.42 | 1.44 | 1.46 | 1.47 | 1.49 | 1.55 | 1.58 | 1.62 | 1.67 | 1.56 |
Edwards Lifesciences Corp has consistently maintained a very strong solvency position based on the provided solvency ratios analysis. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been at 0.00 throughout the reported periods, indicating that the company has no debt relative to its assets, capital, or equity. This demonstrates that Edwards Lifesciences Corp operates with a low level of financial leverage and relies more on equity financing rather than debt, which is generally viewed positively by investors and creditors.
The financial leverage ratio, which measures the company's ability to meet its financial obligations through debt financing, shows a decreasing trend over time. The ratio declined from 1.56 in March 31, 2020, to 1.31 in December 31, 2024. A decreasing financial leverage ratio suggests that the company is becoming less reliant on debt to finance its operations, further reinforcing its strong solvency position.
Overall, based on the solvency ratios analysis, Edwards Lifesciences Corp appears to be in a healthy financial position with minimal debt obligations and a decreasing reliance on debt financing, which bodes well for its long-term financial stability and ability to weather economic downturns.
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 | — | 58.97 | 58.36 | 49.17 | 39.35 | 69.05 | 58.61 | 71.79 | 112.25 | 195.00 | 582.55 | 532.05 | 570.41 | 83.89 | 81.36 | 93.26 | 75.78 | 49.92 | 45.84 | 36.29 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Analyzing the data provided for Edwards Lifesciences Corp, we can see fluctuations in the interest coverage ratio over time. The ratio has shown an improving trend from March 2020 to December 2021, increasing from 36.29 to a peak of 570.41 in December 2021. This indicates a significant improvement in the company's ability to cover its interest expenses with operating income during this period.
However, starting from March 2022, the interest coverage ratio declines sharply, dropping to 49.17 by March 2024. This significant decrease may raise concerns about the company's ability to cover its interest expenses with operating income efficiently.
The most recent data point for December 2024 is missing, but based on the trend observed, it would be important to monitor the company's interest coverage ratio closely to assess any potential financial risks moving forward.
Overall, while Edwards Lifesciences Corp has shown periods of strong interest coverage in the past, the recent decline in the ratio highlights the importance of ongoing monitoring and analysis to ensure the company's financial health and stability.