Innoviva Inc (INVA)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 1.23 | 1.84 | 1.84 | 1.80 | 1.84 | 1.89 | 2.01 | 2.01 | 2.18 | 2.07 | 2.93 | 2.86 | 2.23 | 2.20 | 2.39 | 1.72 | 1.85 | 1.90 | 1.93 | 2.08 |
Innoviva Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 over the years, indicating that the company operates with minimal debt compared to its total assets and capital structure.
Moreover, the Financial leverage ratio, which measures the proportion of the company's assets that are financed by debt, has shown a declining trend from 2.08 in March 2020 to 1.23 in December 2024. This demonstrates that the company has been reducing its reliance on debt financing over the years, which is a positive sign for solvency and financial stability.
Overall, Innoviva Inc's solvency ratios reflect a conservative approach to debt management and a strong financial position, suggesting that the company is well-equipped to meet its financial obligations and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.68 | 2.78 | 6.50 | 9.09 | 9.56 | 5.12 | 16.12 | 16.40 | 16.51 | 22.44 | 10.97 | 16.91 | 20.29 | 21.70 | 18.91 | 18.14 | 16.54 | 15.89 | 16.54 | 13.84 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the data provided for Innoviva Inc, we observe fluctuations in the interest coverage ratio over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio started at 13.84 on March 31, 2020, and generally increased over the next few quarters, reaching a peak of 22.44 on September 30, 2022.
However, after reaching this peak, there was a notable decline in the interest coverage ratio. The ratio decreased significantly to 5.12 on September 30, 2023, indicating a potential weakening in the company's ability to cover its interest expenses comfortably.
The trend continued with further reductions in the interest coverage ratio, hitting a low of 2.68 by December 31, 2024. A declining interest coverage ratio suggests that the company may be facing challenges in generating sufficient earnings to cover its interest payments adequately, which could raise concerns about the company's financial health and ability to service its debt obligations.
It is essential for investors and stakeholders to closely monitor this trend in the interest coverage ratio for Innoviva Inc and assess the company's ability to manage its debt levels and interest expenses effectively in the coming periods.