Globus Medical (GMED)
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 | 1.26 | 1.25 | 1.26 | 1.26 | 1.27 | 1.28 | 1.11 | 1.12 | 1.12 | 1.12 | 1.13 | 1.12 | 1.12 | 1.11 | 1.12 | 1.11 | 1.11 | 1.09 | 1.10 | 1.09 |
Globus Medical demonstrated a strong solvency position based on its solvency ratios analysis. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio remained consistently at 0.00 from March 2020 to December 2024, indicating that the company did not rely heavily on debt to finance its operations and investments.
Furthermore, the financial leverage ratio ranged between 1.09 and 1.28 during the same period. The ratio started at 1.09 in March 2020, peaked at 1.28 in September 2023, and eventually stabilized around 1.26 in June 2024. This may suggest that the company slightly increased its reliance on debt to support its operations and growth in the near term but managed to maintain a relatively stable financial leverage position overall.
Overall, the consistently low debt ratios coupled with a relatively stable financial leverage ratio signify that Globus Medical maintained a prudent financial strategy and a healthy balance between debt and equity in its capital structure, contributing to its solvency and financial stability.
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 | 51.79 | 34.36 | 18.99 | 14.45 | 10.81 | 9.16 | 10.32 | 13.70 | 16.87 | 18.83 | 22.03 | 19.50 | 19.80 | 8.52 | 8.10 | 5.10 | 3.94 | 6.91 | 5.96 | 9.57 |
Interest coverage reflects the ability of Globus Medical to meet its interest obligations from its operating profits. Looking at the trend over the past few years, the interest coverage ratio has shown fluctuations.
In the first quarter of 2020, the interest coverage ratio was 9.57, indicating that Globus Medical generated enough operating income to cover its interest expenses almost ten times over. However, by the fourth quarter of 2020, this ratio had decreased to 3.94, which could raise concerns about the company's ability to cover interest payments adequately.
The ratio improved in the following quarters, reaching a high of 51.79 in the fourth quarter of 2024, suggesting a significant improvement in Globus Medical's ability to cover its interest expenses. This substantial increase could be indicative of improved profitability or better management of debt.
Overall, while the interest coverage ratio has shown fluctuations over the period, the increasing trend in recent quarters is a positive sign, indicating a better ability to meet interest obligations, which bodes well for the financial health and stability of Globus Medical.