IDEXX Laboratories Inc (IDXX)

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 0.19 0.20 0.24 0.25 0.25 0.29 0.29 0.30 0.32 0.33 0.32 0.33 0.37 0.42 0.46 0.37 0.38 0.40 0.41 0.42
Debt-to-capital ratio 0.30 0.32 0.39 0.45 0.53 0.62 0.63 0.55 0.53 0.51 0.51 0.53 0.58 0.66 0.77 0.87 0.80 0.77 0.80 0.93
Debt-to-equity ratio 0.42 0.48 0.64 0.83 1.14 1.60 1.68 1.21 1.12 1.03 1.04 1.11 1.36 1.94 3.30 6.48 3.94 3.44 4.09 13.57
Financial leverage ratio 2.20 2.38 2.62 3.34 4.51 5.55 5.70 4.05 3.53 3.16 3.23 3.31 3.63 4.65 7.18 17.52 10.33 8.65 10.07 32.60

Idexx Laboratories, Inc.'s solvency ratios show the company's ability to meet its long-term financial obligations. Looking at the trend over the past eight quarters, we observe the following:

1. Debt-to-assets ratio has shown a declining trend, indicating that the company has been reducing its reliance on debt to finance its assets. This implies that a higher portion of the company's assets is financed by equity, which is generally considered a positive sign of financial stability.

2. Debt-to-capital ratio has also decreased gradually over the quarters, suggesting that the proportion of debt in the company's capital structure has declined. This indicates a lower financial risk as the company relies more on equity financing.

3. Debt-to-equity ratio has demonstrated a declining pattern, albeit with fluctuation, indicating that the company has been reducing its debt relative to equity. A lower debt-to-equity ratio implies less financial risk and a stronger equity position.

4. The financial leverage ratio shows a decreasing trend, indicating a reduction in the company's financial leverage over time. A lower financial leverage ratio suggests that the company is relying less on debt to finance its operations and investments.

Overall, the trends in Idexx Laboratories, Inc.'s solvency ratios reflect a favorable position in terms of financial stability and ability to meet long-term obligations. The company's decreasing reliance on debt financing and improving ratios indicate a strengthening financial position and lower financial risk over the quarters.

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 26.52 23.56 21.76 20.27 22.58 25.82 28.52 31.94 31.28 30.45 27.75 24.17 20.97 19.13 18.74 18.59 17.81 17.16 15.80 15.12

The interest coverage ratio for Idexx Laboratories, Inc. has shown a generally strong performance over the past eight quarters. The ratio has consistently remained well above 1, indicating that the company's earnings before interest and taxes (EBIT) are significantly higher than its interest expenses. This implies that Idexx Laboratories has had more than enough operating income to cover its interest obligations.

The trend of the interest coverage ratio has been relatively stable, with some fluctuations observed over the quarters. The highest interest coverage ratio of 32.51 was recorded in Q1 2022, reflecting a peak in the company's ability to cover its interest payments. The lowest ratio of 20.85 was seen in Q1 2023, showing a slight dip but still indicating a healthy coverage level.

Overall, Idexx Laboratories, Inc. appears to have a robust ability to meet its interest obligations, which is a positive sign for creditors and investors. The consistent and generally high interest coverage ratios suggest that the company is effectively managing its debt and is likely at low risk of default due to insufficient earnings to cover interest expenses.