ICU Medical Inc (ICUI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.14 | 2.06 | 2.16 | 1.16 | 1.17 |
Based on the provided data, ICU Medical Inc demonstrates a strong solvency position as evidenced by consistently low debt ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio were all reported as 0.00 for the years 2020 to 2024. These ratios indicate that the company has minimal debt in relation to its assets, capital, and equity, respectively.
However, although the debt ratios are low, the Financial leverage ratio shows an increasing trend from 1.17 in 2020 to 2.14 in 2024. This indicates that the company's reliance on debt to finance its operations has increased over the years, potentially leading to higher financial risk.
Overall, while the absence of debt in the traditional solvency ratios suggests a robust financial position, the increasing financial leverage ratio highlights a shift towards a higher level of debt utilization by ICU Medical Inc. It would be important for stakeholders to monitor this trend to ensure that the company's debt levels remain sustainable and within manageable limits.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.38 | 0.24 | -1.01 | 144.72 | 56.62 |
The interest coverage ratio for ICU Medical Inc has exhibited significant fluctuations over the years. As of December 31, 2020, the ratio stood at a healthy level of 56.62, indicating the company's ability to cover its interest expenses comfortably with its operating income.
However, the ratio saw a substantial increase by December 31, 2021, reaching a robust 144.72, signifying an even stronger capacity to service its interest obligations. This improvement may reflect enhanced profitability and operational efficiency during that period.
Unexpectedly, by December 31, 2022, the interest coverage ratio dropped to -1.01, indicating that the company's operating income was insufficient to cover its interest expenses. A negative interest coverage ratio raises concerns about the company's financial health and its ability to meet interest payments.
As of December 31, 2023, the interest coverage ratio showed a slight improvement, standing at 0.24. Although still below 1, the increase suggests a potential stabilization in the company's ability to cover its interest obligations.
By December 31, 2024, the interest coverage ratio further improved to 0.38, albeit remaining below 1, signaling ongoing challenges in meeting interest payments from operating income. This indicates that ICU Medical Inc may still be facing financial difficulties in servicing its interest obligations despite the marginal improvement.
In conclusion, the notable fluctuations in ICU Medical Inc's interest coverage ratio raise concerns about its financial stability and ability to effectively manage its interest expenses over the analyzed period.