Hologic Inc (HOLX)

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 0.30 0.28 0.30 0.30 0.30 0.31 0.30 0.30 0.30 0.30 0.31 0.33 0.36 0.38 0.40 0.40 0.44 0.43 0.43 0.43
Debt-to-capital ratio 0.35 0.34 0.35 0.35 0.36 0.37 0.36 0.37 0.38 0.39 0.41 0.41 0.45 0.50 0.55 0.57 0.55 0.57 0.56 0.56
Debt-to-equity ratio 0.54 0.50 0.54 0.53 0.55 0.58 0.56 0.59 0.62 0.64 0.68 0.70 0.82 1.00 1.21 1.32 1.23 1.32 1.26 1.30
Financial leverage ratio 1.82 1.82 1.80 1.78 1.82 1.86 1.87 1.99 2.05 2.11 2.22 2.12 2.31 2.66 3.02 3.27 2.80 3.04 2.94 3.02

The solvency ratios of Hologic Inc provide insights into the company's ability to meet its long-term financial obligations. Looking at the trend over the past few quarters, we observe that the debt-to-assets ratio has been relatively stable around 0.30, indicating that the company finances about 30% of its assets with debt.

The debt-to-capital ratio also shows a consistent trend, hovering around 0.35 to 0.37, suggesting that Hologic relies on debt for around 35% to 37% of its overall capital structure.

When examining the debt-to-equity ratio, we notice an increasing trend, rising from 0.54 to 1.30 over the past few years. This indicates that the company's reliance on debt financing in relation to equity has been growing, reaching 1.30 as of the latest reporting period. This trend suggests an increasing level of financial risk as the proportion of debt to equity becomes more skewed.

The financial leverage ratio, which measures the extent to which a company is using debt to fund its operations, has shown fluctuations but generally increasing from 1.82 to 3.02. This indicates that the company's financial leverage has been rising, suggesting that Hologic's financial risk has also been increasing over time.

Overall, the solvency ratios of Hologic Inc reflect a stable debt utilization in funding its assets and operations, but there is a concerning trend of increasing reliance on debt financing and higher financial leverage, which may raise risk levels for the company in meeting its long-term obligations. Monitoring these ratios will be crucial for assessing the company's financial health and risk management going forward.

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 6.76 7.09 7.29 9.91 13.36 17.70 20.80 22.00 24.55 26.20 27.74 24.56 16.53 9.60 3.07 2.55 -0.93 -0.83 0.55 0.48

Hologic Inc's interest coverage ratio has shown fluctuations over the periods presented. Generally, a higher interest coverage ratio indicates that the company is better positioned to meet its interest obligations.

Looking at the trend, the interest coverage ratio experienced an upward trajectory from the end of 2019 to the middle of 2022, peaking at 27.74 in June 2021. This trend suggests that the company's earnings were sufficiently high to cover its interest expenses during this period.

However, from the second half of 2022 to the end of 2023, the interest coverage ratio witnessed a decline. Despite the ratio remaining above 6 throughout this period, the decrease in the ratio may indicate a potential weakening in the company's ability to cover interest expenses with its operating income.

It is important for stakeholders to monitor this trend closely to assess the company's financial health and ability to meet debt obligations. A sustained decrease in the interest coverage ratio could raise concerns about Hologic Inc's financial stability.