Healthcare Services Group Inc (HCSG)
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 | 1.61 | 1.73 | 1.69 | 1.72 | 1.63 |
Based on the provided data, Healthcare Services Group Inc has consistently maintained a strong solvency position over the years, as indicated by its solvency ratios.
1. Debt-to-assets ratio: The company has reported a Debt-to-assets ratio of 0.00 for each year from 2020 to 2024. This suggests that Healthcare Services Group Inc has not relied on debt to finance its assets, indicating a low financial risk related to debt obligations.
2. Debt-to-capital ratio: Similar to the Debt-to-assets ratio, the Debt-to-capital ratio for the company is also 0.00 for the years 2020 to 2024. This implies that the company's capital structure has been primarily supported by equity rather than debt.
3. Debt-to-equity ratio: The Debt-to-equity ratio for Healthcare Services Group Inc is consistently 0.00 across the years 2020 to 2024. This reaffirms that the company has a very low level of debt in comparison to the equity invested in the business.
4. Financial leverage ratio: The Financial leverage ratio shows a slight fluctuation over the years, with values ranging from 1.61 to 1.73. Despite this variation, the ratios are still at levels indicating a conservative use of debt in the company's capital structure.
In conclusion, the solvency ratios of Healthcare Services Group Inc demonstrate a robust financial position with minimal reliance on debt financing. The company's stable and low debt levels suggest a healthy financial risk profile and effective management of its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.22 | 7.75 | 15.92 | 45.64 | 95.02 |
The interest coverage ratio of Healthcare Services Group Inc has shown a declining trend over the years, indicating a potential increase in financial risk. As of December 31, 2020, the company had a robust interest coverage ratio of 95.02, suggesting that it could easily meet its interest obligations with its operating income. However, by December 31, 2024, the interest coverage ratio had decreased to 9.22. This significant decrease signals that the company may be facing challenges in generating enough operating income to cover its interest expenses. It is crucial for investors and stakeholders to monitor this ratio closely as a declining trend could indicate potential financial distress for the company.