Innoviva Inc (INVA)

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 0.38 0.40 0.39 0.36 0.33 0.39 0.40 0.43 0.44 0.49 0.36 0.39 0.42 0.43 0.48 0.52 0.57 0.60 0.65
Debt-to-capital ratio 0.40 0.42 0.45 0.44 0.44 0.41 0.53 0.53 0.49 0.49 0.54 0.38 0.42 0.44 0.45 0.50 0.55 0.59 0.63 0.67
Debt-to-equity ratio 0.66 0.71 0.80 0.79 0.79 0.69 1.14 1.15 0.95 0.97 1.18 0.61 0.71 0.79 0.83 1.00 1.20 1.46 1.71 2.04
Financial leverage ratio 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 2.31 2.53 2.83 3.13

Based on the solvency ratios of Innoviva Inc provided in the table, we can observe the following trends:

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. Innoviva Inc's debt-to-assets ratio has been fluctuating between 0.36 to 0.44 over the past eight quarters. A lower debt-to-assets ratio indicates a lower reliance on debt for financing the company's assets, which could be considered favorable for solvency.

2. Debt-to-capital ratio: This ratio indicates the proportion of a company's capital structure that is financed by debt. Innoviva Inc's debt-to-capital ratio has ranged from 0.40 to 0.49 during the same period. Similar to the debt-to-assets ratio, a lower debt-to-capital ratio suggests a lower dependency on debt for capital financing.

3. Debt-to-equity ratio: The debt-to-equity ratio reflects the degree of leverage in a company's capital structure. Innoviva Inc's debt-to-equity ratio has varied between 0.66 to 0.96 over the analyzed quarters. A lower debt-to-equity ratio implies less reliance on debt for equity financing, which could be viewed positively for solvency.

4. Financial leverage ratio: This ratio shows the extent to which a company uses debt to finance its operations and growth. Innoviva Inc's financial leverage ratio has shown fluctuations between 1.84 to 2.18 in the given quarters. A lower financial leverage ratio indicates a lower level of financial risk associated with the company's use of debt.

Overall, the trends in these solvency ratios suggest that Innoviva Inc has maintained a relatively stable level of debt relative to its assets, capital, equity, and overall financial leverage over the past eight quarters. This indicates a balanced approach to financing the company's operations and investments, which may contribute to its overall solvency and financial stability.

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 11.13 4.95 18.00 22.97 27.06 20.49 6.57 6.96 6.44 18.82 18.47 17.53 17.52 16.87 15.51 14.56 13.20 13.47 12.92 11.94

Interest coverage ratio is a measure of a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Analyzing the interest coverage ratios of Innoviva Inc over the past eight quarters, we can observe fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio ranged from a low of 20.01 in Q2 2023 to a high of 63.81 in Q4 2023.

The decrease in interest coverage in Q2 2023 may indicate potential challenges in meeting interest obligations compared to previous quarters. However, the significant improvement in Q4 2023 suggests an enhanced ability to cover interest expenses.

Overall, the varying interest coverage ratios of Innoviva Inc highlight the importance of monitoring the company's financial performance and debt management strategies to ensure sustainable operations and financial stability.