Halozyme Therapeutics Inc (HALO)
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 | 5.67 | 20.68 | 10.85 | 5.61 | 3.84 |
Halozyme Therapeutics Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00% for the years 2020 to 2024, suggesting that the company has no significant debt obligations in relation to its total assets, capital, or equity.
However, the Financial leverage ratio shows some fluctuation over the years, with a notable increase from 3.84 in 2020 to 20.68 in 2023, before dropping to 5.67 in 2024. This ratio indicates that the company has increased its reliance on debt to finance its operations and investments in 2023 but then reduced this leverage in 2024, which can be a positive sign of managing debt levels more effectively.
Overall, Halozyme Therapeutics Inc's solvency ratios reflect a stable financial position with minimal debt burden and a relatively conservative approach to leveraging, which can be seen as a positive indicator for investors and stakeholders.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 31.79 | 19.57 | 15.69 | 36.66 | 7.08 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to pay interest expenses.
Analyzing Halozyme Therapeutics Inc's interest coverage ratio over the years, we observe a fluctuating trend. In 2020, the interest coverage ratio was 7.08, suggesting that the company's operating income was able to cover its interest expenses 7.08 times.
However, over the next four years, the interest coverage ratio improved significantly. By the end of 2021, the ratio had increased to 36.66, indicating a substantial increase in the company's ability to service its interest payments.
Subsequently, in 2022, the interest coverage ratio decreased to 15.69, but remained above the threshold indicating a comfortable position to cover interest expenses. By the end of 2023, the ratio improved to 19.57, further enhancing the company's financial stability.
In 2024, the interest coverage ratio further increased to 31.79, signifying a robust ability to meet interest obligations. Overall, the trend suggests an improvement in Halozyme Therapeutics Inc's ability to cover interest expenses, indicating a healthier financial position and potentially lower risk of default.