Hims Hers Health Inc (HIMS)

Based on the provided data for Hims Hers Health Inc's solvency ratios, the following key points can be observed:

1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. Hims Hers Health Inc has consistently maintained a debt-to-assets ratio of 0.00 over the five-year period from 2020 to 2024. This implies that the company has not relied on debt to fund its assets, which can be considered a positive sign of financial stability.

2. Debt-to-capital ratio: Although data for 2020 is not available, the debt-to-capital ratio for Hims Hers Health Inc has been 0.00 from 2021 to 2024. This suggests that the company's capital structure is not heavily reliant on debt and that it has a strong ability to finance operations through equity and retained earnings.

3. Debt-to-equity ratio: Similar to the debt-to-capital ratio, the debt-to-equity ratio for Hims Hers Health Inc has also been 0.00 from 2021 to 2024. This indicates that the company's equity is sufficient to cover its debt obligations, highlighting a low risk of financial distress due to excessive debt levels.

4. Financial leverage ratio: The financial leverage ratio provides insight into the extent to which a company uses debt to finance its operations. Hims Hers Health Inc's financial leverage ratio has shown an increasing trend from 1.26 in 2021 to 1.48 in 2024. This suggests that the company's reliance on debt has been gradually increasing over the years, indicating a higher degree of financial risk compared to the other solvency ratios.

In summary, Hims Hers Health Inc demonstrates a strong solvency position with minimal reliance on debt financing, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios. However, the increasing trend in the financial leverage ratio signals a growing dependence on debt, which should be monitored to ensure sustainable financial health.

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Coverage ratios

The interest coverage ratio for Hims Hers Health Inc indicates a concerning trend. For December 31, 2020, the ratio was reported as -1,797.70, suggesting that the company struggled immensely to cover its interest expenses with its operating income. The absence of a specific value for December 31, 2021, makes it difficult to ascertain the company's performance during that period.

Moving forward to December 31, 2022, the interest coverage ratio significantly improved to -22.99, indicating a better ability to cover interest payments compared to the previous year. However, it is important to note that a negative ratio implies the company's operating income was insufficient to cover its interest expenses during these periods. Moreover, there is missing data for December 31, 2023, and 2024, which limits a more detailed analysis of the company's recent performance in relation to interest coverage.