Krystal Biotech Inc (KRYS)

Krystal Biotech Inc has consistently maintained a debt-free capital structure, as indicated by all solvency ratios showing zero values for the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio across the last five years. This implies that the company has not utilized any debt to finance its operations, acquisitions, or investments during this period.

The financial leverage ratio, which measures the proportion of debt in the company's capital structure, has fluctuated slightly over the years, ranging from 1.03 in 2019 to 1.07 in 2022, but has generally been close to or just above 1. This indicates that while the company has been debt-free, it has utilized some financial resources beyond equity to support its assets and operations. Nevertheless, the financial leverage ratio remains relatively low and stable, suggesting a conservative approach to capital structure management.

Overall, Krystal Biotech Inc's solvency ratios reflect a strong financial position with a minimal reliance on debt financing. This strategy may imply lower financial risk and interest expenses for the company, potentially providing more financial flexibility and stability in the long term.

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Coverage ratios

The interest coverage ratio for Krystal Biotech Inc was not available for the years ending on December 31, 2023, and December 31, 2020. However, it was calculated at -45.63 for the year ending on December 31, 2021, indicating that the company's operating income was insufficient to cover its interest expenses during that period. The negative value suggests that the company's income was insufficient to cover its interest payments, potentially reflecting a financial strain and an increased risk of default on debt obligations. The lack of data for other years prevents a trend analysis, but the negative interest coverage ratio in 2021 raises concerns about the company's financial health and ability to service its debt obligations.