Globus Medical (GMED)
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 | 1.26 | 1.27 | 1.12 | 1.12 | 1.11 |
Globus Medical exhibits a strong solvency position based on its solvency ratios. The Debt-to-assets ratio has consistently remained at 0.00 from 2020 to 2024, indicating that the company has not utilized debt to finance its assets, which is a positive sign for investors and creditors.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also remained at 0.00 across the same period, suggesting that the company's capital and equity structures are not burdened by debt obligations. This indicates a low level of financial risk and a healthier financial position for the company.
The Financial leverage ratio, on the other hand, has shown a slight increase from 1.11 in 2020 to 1.26 in 2024. This indicates that the company's reliance on debt to finance its operations has slightly increased over the years, but it still remains at a moderate level.
Overall, based on the solvency ratios analyzed, Globus Medical appears to have a strong and stable solvency position, with minimal debt obligations and a sound capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 10.03 | 16.60 | 19.40 | 8.28 |
The interest coverage ratio is a key financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio signifies that a company is more capable of meeting its interest obligations.
Analyzing the interest coverage ratios of Globus Medical from 2020 to 2024, we observe the following trend:
1. As of December 31, 2020, the interest coverage ratio was 8.28, indicating that the company's operating income was able to cover its interest expenses 8.28 times over.
2. By December 31, 2021, the interest coverage ratio significantly improved to 19.40, pointing towards Globus Medical's strengthened ability to cover its interest costs with its operating earnings.
3. This positive trend continued until December 31, 2022, with an interest coverage ratio of 16.60, showcasing the company's ongoing strong financial position.
4. However, there was a slight dip in the interest coverage ratio by December 31, 2023, with a value of 10.03. Although the ratio decreased, it still indicates that Globus Medical's operating income was sufficient to cover its interest expenses.
5. Notably, there is no data provided for December 31, 2024, which may indicate the unavailability of information or a significant change in the reporting structure.
Overall, the trend in Globus Medical's interest coverage ratios demonstrates a generally positive financial health with the company consistently maintaining a comfortable level of interest coverage over the years, with a temporary dip in 2023. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to manage its interest obligations effectively.