Integra LifeSciences Holdings (IART)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.33 | 0.37 | 0.39 | 0.36 |
| Debt-to-capital ratio | 0.47 | 0.42 | 0.45 | 0.48 | 0.46 |
| Debt-to-equity ratio | 0.88 | 0.72 | 0.82 | 0.93 | 0.85 |
| Financial leverage ratio | 2.38 | 2.16 | 2.25 | 2.39 | 2.33 |
The solvency ratios of Integra Lifesciences Holdings Corp indicate its ability to meet its long-term obligations and the extent of its financial leverage over a five-year period from 2019 to 2023.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. Integra's debt-to-assets ratio has varied slightly between 0.37 to 0.43 over the past five years, indicating that, on average, around 40% of its assets are funded by debt.
2. Debt-to-capital ratio: This ratio reflects the percentage of a company's capital that is financed by debt rather than equity. Integra's debt-to-capital ratio has ranged from 0.44 to 0.51 during the period, suggesting that debt accounts for approximately 44% to 51% of the company's total capital.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's total debt to its total equity, showing the extent to which debt is used to finance operations. Integra's debt-to-equity ratio has fluctuated between 0.80 to 1.03 over the five years, indicating that the company's debt levels relative to equity have varied but have generally been high.
4. Financial leverage ratio: This ratio measures the proportion of a company's assets that are financed by debt compared to equity. Integra's financial leverage ratio has fluctuated between 2.16 to 2.39, highlighting the company's reliance on debt financing to support its operations and growth.
Overall, Integra Lifesciences Holdings Corp has maintained relatively stable solvency ratios over the five-year period, with a consistent reliance on debt to finance a significant portion of its assets and operations. Investors and stakeholders should consider the trend in these ratios to assess the company's long-term financial health and risk profile.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.58 | 5.31 | 5.26 | 2.31 | 2.11 |
Integra Lifesciences Holdings Corp's interest coverage ratio has fluctuated over the past five years, ranging from 2.43 to 6.34. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A higher ratio is generally preferred as it signifies that the company has more earnings to cover its interest expenses.
In this case, the interest coverage ratio was relatively strong in 2022 at 6.34, indicating that the company generated more than enough operating income to cover its interest payments. However, the ratio decreased in 2023 to 3.26, which may suggest that the company's ability to cover interest expenses with operating income weakened compared to the previous year.
Overall, while the company's interest coverage ratio has shown some variability, it is important for stakeholders to monitor this ratio closely to ensure that Integra Lifesciences Holdings Corp can comfortably meet its interest obligations and maintain financial stability.