Healthcare Services Group Inc (HCSG)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.73 | 1.72 | 1.72 | 1.63 | 1.57 |
Healthcare Services Group, Inc.'s solvency ratios indicate a conservative financial structure with low levels of debt relative to assets, capital, and equity over the past five years. The company's debt-to-assets ratio has consistently remained low, ranging from 0.00 to 0.03. This suggests that the company relies minimally on debt to finance its operations and investments.
Similarly, the debt-to-capital and debt-to-equity ratios also reflect prudent financial management, with values consistently below 0.10 in the same period. These ratios indicate that the company has a stable capital structure with a significant portion of its funding sourced from equity rather than debt.
The financial leverage ratio, which measures the company's reliance on debt financing, has shown a slight upward trend from 1.57 in 2019 to 1.73 in 2023. Despite this increase, the overall level of financial leverage remains moderate, indicating that Healthcare Services Group, Inc. has maintained a healthy balance between debt and equity in its capital structure.
Overall, the solvency ratios of Healthcare Services Group, Inc. suggest a low-risk financial position with a strong ability to meet its financial obligations and withstand economic challenges.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -21.55 | -43.22 | -100.05 | -35.58 | 25.60 |
The interest coverage ratio of Healthcare Services Group, Inc. has varied over the past five years. The company's interest coverage ratio for the fiscal year ending December 31, 2023, was 6.11, reflecting a decrease from 17.91 in 2022 and a significant decline from 38.82 in 2021. Despite the downward trend, the interest coverage ratio remains above 1, indicating that the company's earnings are sufficient to cover its interest expenses. However, the decreasing trend suggests that the company may be experiencing challenges in generating enough earnings to comfortably cover its interest obligations. While the ratios for 2020 and 2019 were considerably higher at 85.30 and 22.51 respectively, the recent decline in the interest coverage ratio warrants further investigation into the company's financial health and ability to meet its debt obligations.