GE HealthCare Technologies Inc. (GEHC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |
|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.27 | 0.26 | 0.26 | 0.26 | 0.32 |
| Debt-to-capital ratio | 0.47 | 0.53 | 0.51 | 0.53 | 0.54 | 0.59 |
| Debt-to-equity ratio | 0.88 | 1.12 | 1.06 | 1.11 | 1.18 | 1.44 |
| Financial leverage ratio | 3.92 | 4.07 | 4.08 | 4.35 | 4.55 | 4.54 |
GE HealthCare Technologies Inc. has shown a consistent improvement in its solvency ratios over the periods indicated. The Debt-to-assets ratio has decreased from 0.32 in September 30, 2023, to 0.23 in December 31, 2024. This suggests that the company has been able to reduce its reliance on debt to finance its assets over time. Similarly, the Debt-to-capital ratio has also shown a downward trend, decreasing from 0.59 in September 30, 2023, to 0.47 in December 31, 2024. This indicates that the company has been able to decrease its debt compared to its capital structure.
The Debt-to-equity ratio has also improved significantly, going down from 1.44 in September 30, 2023, to 0.88 in December 31, 2024. This signifies that the company has reduced its debt relative to its equity, which is a positive sign of financial health. Additionally, the Financial leverage ratio has decreased consistently from 4.54 in September 30, 2023, to 3.92 in December 31, 2024. This indicates that the company has been able to reduce its financial leverage over the periods, which can lead to a lower financial risk.
Overall, based on these solvency ratios, GE HealthCare Technologies Inc. appears to be in a stronger financial position with a lower reliance on debt and improved leverage ratios.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |
|---|---|---|---|---|---|---|
| Interest coverage | 5.15 | 4.74 | 4.56 | 4.44 | 4.49 | 5.37 |
The interest coverage ratio for GE HealthCare Technologies Inc. has been relatively stable over the periods analyzed, ranging from a low of 4.44 to a high of 5.37. This indicates that the company's ability to cover its interest expenses with its operating income has remained consistent. A higher interest coverage ratio generally suggests a lower financial risk for the company, as it means the company is generating enough operating income to comfortably meet its interest obligations. However, it is important to monitor trends over time to ensure the company's financial health remains stable and sustainable.