Hims Hers Health Inc (HIMS)
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 | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — | — |
| Financial leverage ratio | 1.28 | 1.18 | 1.26 | — | — |
The solvency ratios of Hims Hers Health Inc indicate a consistent trend of low leverage and strong financial stability over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all consistently remained at 0.00, suggesting that the company has not relied heavily on debt to finance its operations and investments during this period.
Additionally, the financial leverage ratio has shown a slight fluctuation, from 1.18 in 2022 to 1.28 in 2023, indicating a moderate increase in financial leverage. However, it is important to note that a financial leverage ratio of around 1.0 to 1.5 is generally considered healthy, as it signifies an appropriate balance between debt and equity in the company's capital structure.
Overall, based on the solvency ratios analyzed, Hims Hers Health Inc appears to have a strong financial position with minimal debt obligations relative to its assets and capital, which bodes well for its long-term financial stability and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | -22.99 | — | -1,797.70 | -194.05 |
The interest coverage ratio for Hims Hers Health Inc has shown considerable fluctuations over the past five years. In 2019, the interest coverage ratio was at -194.05, indicating that the company's earnings before interest and taxes (EBIT) were significantly lower than its interest expenses, posing a high risk of defaulting on its interest payments.
This negative trend continued in 2020, with the interest coverage ratio deteriorating to -1,797.70. This implies that the company's EBIT was substantially insufficient to cover its interest obligations, signaling severe financial distress.
However, in 2021 and 2023, the interest coverage ratio data is not available due to potentially certain financial complexities or information unavailability. The negative ratios observed in 2019 and 2020 suggest that the company had been struggling to generate enough earnings to meet its interest costs, highlighting a heightened financial vulnerability during those periods.
Given the absence of data for 2021 and 2023, it is challenging to ascertain the current financial health of the company, but the historically low interest coverage ratios raise concerns about its ability to service debt in earlier periods. Overall, a sustained negative or low interest coverage ratio could indicate a heightened risk of default on interest payments, potentially leading to financial instability for Hims Hers Health Inc.