ICU Medical Inc (ICUI)
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 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.37 | 0.36 | 0.35 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.43 | 0.43 | 0.43 | 0.43 | 0.44 | 0.45 | 0.44 | 0.43 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.74 | 0.76 | 0.76 | 0.77 | 0.78 | 0.81 | 0.78 | 0.75 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.06 | 2.09 | 2.11 | 2.13 | 2.16 | 2.21 | 2.20 | 2.18 | 1.16 | 1.16 | 1.16 | 1.16 | 1.17 | 1.19 | 1.32 | 1.32 | 1.23 | 1.22 | 1.23 | 1.26 |
Solvency ratios measure a company's ability to meet its long-term debt obligations. Looking at ICU Medical, Inc.'s solvency ratios over the past eight quarters, we can see that the debt-to-assets ratio has remained relatively stable at around 0.37. This indicates that approximately 37% of the company's assets are financed by debt.
The debt-to-capital ratio has also remained fairly consistent, hovering around 0.44. This ratio shows that 44% of ICU Medical's capital structure is made up of debt.
On the other hand, the debt-to-equity ratio has shown a slight upward trend, increasing from 0.76 in Q1 2022 to 0.79 in Q1 2023. This suggests that the company has been increasingly relying on debt financing in comparison to equity financing.
The financial leverage ratio has also been increasing steadily, from 2.18 in Q1 2022 to 2.13 in Q1 2023. This ratio indicates that ICU Medical has been using more debt to finance its operations, which can potentially lead to higher financial risk.
Overall, ICU Medical, Inc.'s solvency ratios demonstrate a stable debt-to-assets and debt-to-capital structure, but an increasing reliance on debt financing relative to equity. It is important for investors and stakeholders to monitor these ratios over time to assess the company's long-term financial health and risk levels.
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 | 0.17 | 0.30 | 0.07 | 0.05 | -0.66 | -0.49 | 0.65 | 4.01 | 144.72 | 197.31 | 107.49 | 61.65 | 56.62 | 52.31 | 77.28 | 167.11 | 209.94 | 143.14 | 70.82 | 74.52 |
Interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses. However, in the case of ICU Medical, Inc., the interest coverage ratios have been fluctuating significantly over the past quarters.
In Q4 2023, the interest coverage ratio was 0.50, indicating that the company's operating income was only able to cover half of its interest expenses. This was a decrease from the previous quarter's ratio of 0.72. The declining trend in interest coverage ratios raises concerns about the company's financial health and ability to meet its debt obligations.
Looking back at previous quarters, ICU Medical, Inc. experienced a notable negative interest coverage ratio of -0.05 in Q4 2022, indicating that the company's operating income was insufficient to cover its interest expenses. Although the ratio improved in subsequent quarters, reaching a high of 7.22 in Q1 2022, the recent downward trend is worrisome.
Overall, the inconsistent and decreasing interest coverage ratios suggest that ICU Medical, Inc. may be facing challenges in generating sufficient operating income to cover its interest expenses. Investors and creditors may see this as a potential red flag regarding the company's financial stability and ability to service its debt obligations.