Healthcare Services Group Inc (HCSG)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.73 | 1.70 | 1.69 | 1.63 | 1.72 | 1.71 | 1.69 | 1.67 | 1.72 | 1.65 | 1.68 | 1.59 | 1.63 | 1.62 | 1.64 | 1.67 | 1.57 | 1.60 | 1.58 | 1.63 |
The solvency ratios of Healthcare Services Group, Inc. indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: The company's debt-to-assets ratio has been relatively low and stable over the past eight quarters, ranging from 0.01 to 0.06 during this period. This indicates that a small portion of the company's assets is financed by debt, which suggests a low financial risk.
2. Debt-to-capital ratio: The debt-to-capital ratio has also been consistently low, varying from 0.02 to 0.09 in the same period. This ratio reflects the proportion of the company's capital that is financed through debt. The low ratios indicate that the company relies more on equity financing rather than debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio reflects the degree of financial leverage used by the company. Healthcare Services Group, Inc. has maintained a stable debt-to-equity ratio between 0.02 and 0.10 over the past eight quarters. This indicates that the company's capital structure is well-balanced, with a reasonable mix of debt and equity financing.
4. Financial leverage ratio: The financial leverage ratio measures the company's ability to meet its fixed financial charges. Healthcare Services Group, Inc. has shown consistent financial leverage ratios between 1.63 and 1.73 during the period under review. This suggests that the company has a moderate level of financial leverage, which is within manageable limits.
Overall, based on the solvency ratios analyzed, Healthcare Services Group, Inc. appears to have a sound financial position with a conservative debt structure and manageable financial obligations.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | -193.42 | -42.88 | -65.71 | -79.60 | -94.94 | -99.26 | -81.60 | -62.68 | -44.24 | -35.43 | -4.26 | -6.08 | -3.49 | -17.70 | -7.10 | -4.24 | -2.16 |
Healthcare Services Group, Inc.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 5.47 to 27.22. Generally, a higher interest coverage ratio indicates a company's ability to comfortably cover its interest expenses with operating income.
Looking at the trend, in the most recent quarter (Q4 2023), the interest coverage ratio was 6.11, which denotes that the company's operating income was able to cover its interest expenses 6.11 times over. This suggests that the company has a decent ability to meet its interest obligations with its current level of earnings.
However, compared to the previous quarter, there was a slight decrease in the interest coverage ratio from 5.47 to 6.11. Despite this decrease, the current ratio of 6.11 is still within a reasonable range.
Further back, in Q2 2022 and Q1 2022, the interest coverage ratios were notably higher at 27.22 and 26.33, respectively. These higher ratios indicate a stronger ability to cover interest expenses with operating income during those periods.
Overall, Healthcare Services Group, Inc. has maintained a generally healthy interest coverage ratio over the past two years, demonstrating its capability to meet its interest obligations. However, it is important for the company to continue monitoring and managing its interest expenses to ensure its financial health.