Haemonetics Corporation (HAE)

The solvency ratios of Haemonetics Corporation indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has fluctuated over the past five years, ranging between 0.24 and 0.39, with the latest figure standing at 0.36 as of March 31, 2024. This ratio suggests that 36% of the company's assets are funded by debt, indicating moderate reliance on debt financing for its operations.

Similarly, the debt-to-capital ratio shows a downward trend from 0.34 in 2020 to 0.45 in 2024, indicating that 45% of the company's capital structure is funded by debt as of the latest reporting period. The debt-to-equity ratio has also exhibited variability, with the latest figure of 0.83 suggesting that debt accounts for 83% of the company's equity. This ratio has decreased from 0.94 in 2021, indicating a reduction in the level of financial leverage.

The financial leverage ratio reflects the company's proportion of assets to equity and debt. Haemonetics' financial leverage ratio has ranged between 2.16 and 2.49 over the past five years, with the latest ratio at 2.29 as of March 31, 2024. This ratio highlights that the company has significant leverage, with over two times more assets funded by debt compared to equity.

Overall, the solvency ratios of Haemonetics Corporation suggest a moderate level of leverage, with a decreasing trend in debt-to-capital and debt-to-equity ratios over the past few years. However, the company still relies on debt financing to support its operations and growth initiatives, as indicated by the consistent presence of debt in its capital structure.

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Coverage ratios

Haemonetics Corporation's interest coverage has shown a declining trend over the past five years, dropping from 13.92 in March 2022 to 8.46 in March 2024. Despite this decline, the company's interest coverage remains healthy over the period, indicating its ability to meet its interest obligations. A higher interest coverage ratio signifies that the company is more capable of servicing its debt with its operating income. The current interest coverage of 8.46 suggests that Haemonetics Corporation is generating sufficient earnings to cover its interest expenses, although it has decreased from previous years. Investors and creditors typically prefer companies with higher interest coverage ratios as they indicate a lower risk of default on debt obligations.