Hologic Inc (HOLX)

Hologic Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has shown a decreasing trend over the past five years, from 0.38 in 2020 to 0.27 in 2024. This indicates that the company's level of debt relative to its total assets has been improving, which is a positive sign of financial health.

Similarly, the debt-to-capital ratio has also shown a decreasing trend, from 0.50 in 2020 to 0.33 in 2024. This ratio reflects the proportion of debt in the company's capital structure, and the declining trend suggests that the company is relying less on debt funding and more on equity.

The debt-to-equity ratio has also decreased over the years, from a high of 1.00 in 2020 to 0.49 in 2024. This shows that the company's reliance on debt financing relative to equity has reduced, which is generally considered favorable as it signifies a lower financial risk.

The financial leverage ratio, which indicates the extent to which a company is using debt to finance its assets, has also been decreasing over the years, from 2.66 in 2020 to 1.78 in 2024. A decreasing trend in this ratio suggests that the company is becoming less leveraged and is relying more on equity financing.

Overall, the decreasing trend in these solvency ratios for Hologic Inc indicates an improvement in the company's financial structure and stability, as it shows a reduced reliance on debt and a stronger equity position over the years.

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Coverage ratios

Hologic Inc's interest coverage ratio has exhibited variability over the past five years. The interest coverage ratio, a measure of a company's ability to meet its interest obligations on outstanding debt, was 8.09 in September 2024, reflecting a slight improvement from the previous year. However, it was lower compared to the ratios in 2022 and 2021, which were 17.70 and 26.24, respectively, indicating a stronger ability to cover interest expenses during those periods.

In 2020, the interest coverage ratio was 9.64, which was higher than in 2024 but lower than in 2022 and 2021. This suggests that the company's ability to cover interest payments has fluctuated in recent years. Overall, while the interest coverage ratio for Hologic Inc has shown some volatility, it remains above 1, indicating that the company is generating sufficient earnings to cover its interest expenses. It is essential for investors and lenders to monitor this ratio to assess the company's financial health and debt repayment capacity.