Innoviva Inc (INVA)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.36	0.36	0.43	0.39	0.52
Debt-to-capital ratio	0.40	0.44	0.49	0.42	0.55
Debt-to-equity ratio	0.66	0.79	0.95	0.71	1.20
Financial leverage ratio	1.84	2.18	2.23	1.85	2.31

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Innoviva Inc's solvency ratios have shown a mixed trend over the past few years.

The debt-to-assets ratio decreased from 0.52 in 2019 to 0.36 in 2023, indicating that the company's reliance on debt to finance its assets has decreased, which could imply a healthier balance sheet.

The debt-to-capital ratio also decreased from 0.55 in 2019 to 0.40 in 2023, suggesting that the proportion of debt used to fund the company's capital structure has improved.

The debt-to-equity ratio decreased from 1.20 in 2019 to 0.66 in 2023, reflecting a reduction in the level of financial leverage and signaling a stronger equity position compared to debt.

The financial leverage ratio decreased from 2.31 in 2019 to 1.84 in 2023, indicating a decrease in the company's leverage and potential financial risk.

Overall, the decreasing trend in these solvency ratios from 2019 to 2023 suggests an improvement in Innoviva Inc's financial leverage and debt management, potentially enhancing its ability to weather economic uncertainties and meet its long-term financial obligations.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	11.13	18.77	6.44	17.52	13.20

Innoviva Inc's interest coverage ratio has displayed an improving trend over the past five years, indicating the company's ability to meet its interest obligations. The interest coverage ratio has increased from 18.78 in 2019 to 63.81 in 2023, reflecting a significant enhancement in the company's ability to cover its interest expenses with operating earnings. This positive trend suggests that the company's operating profits are sufficiently higher than its interest expenses, demonstrating financial strength and stability. The consistent improvement in the interest coverage ratio signifies that the company is effectively managing its debt obligations and generating ample operating income to service its debt. Overall, the upward trajectory of Innoviva Inc's interest coverage ratio underscores its sound financial health and ability to meet its debt commitments comfortably.