Hologic Inc (HOLX)

Solvency ratios

	Sep 30, 2024	Mar 31, 2024	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
Debt-to-assets ratio	0.27	0.29	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
Debt-to-capital ratio	0.33	0.34	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
Debt-to-equity ratio	0.49	0.52	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
Financial leverage ratio	1.78	1.80	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

Hologic Inc's solvency ratios provide insight into its financial health and ability to meet its long-term obligations. Over the past few years, the company's debt-to-assets ratio has generally remained stable, ranging between 0.27 to 0.44. This indicates that a significant portion of the company's assets is financed by debt, with the ratio trending towards lower levels more recently.

The debt-to-capital ratio, which reveals the proportion of capital that comes from debt, has also shown stability over time, fluctuating between 0.33 and 0.57. This suggests that Hologic Inc relies on a mix of debt and equity to finance its operations, with the ratio trending towards higher levels in recent periods.

Examining the debt-to-equity ratio, which illustrates the extent to which the company is leveraged, a downward trend is observed over the years, from 0.49 in 2024 to 1.32 in 2019. This signifies that the company has been reducing its reliance on debt in favor of equity financing, which is a positive indicator of financial strength and stability.

Lastly, the financial leverage ratio, which measures the company's total assets relative to equity, has fluctuated significantly from 1.78 to 3.27 over the analyzed period. The increasing trend indicates a rise in financial leverage, potentially posing higher financial risk but also showcasing potential for higher returns.

Overall, Hologic Inc's solvency ratios reflect a mix of debt and equity financing strategies, with recent trends suggesting a move towards lower debt levels and improved financial stability. Investors and stakeholders may view these developments positively in evaluating the company's long-term financial health and risk profile.

Coverage ratios

	Sep 30, 2024	Mar 31, 2024	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
Interest coverage	8.09	5.91	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

Hologic Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

Looking at the trend, we can see an overall improving trend in the interest coverage ratio from negative values in 2019 to positive values in recent periods. This improvement suggests that the company's earnings have been relatively more than sufficient to cover its interest expenses.

In the most recent period, as of September 30, 2024, Hologic Inc's interest coverage ratio stands at 8.09, indicating that the company's EBIT is 8.09 times the size of its interest expenses. This level of coverage indicates a healthy ability to meet interest obligations.

It is important to note that the interest coverage ratio is subject to variability based on a company's financial performance, so it is crucial to monitor this ratio over time to assess the company's financial health and its capacity to manage its debt obligations.