LeMaitre Vascular Inc (LMAT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.14 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.17 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.21 | 0.00 |
| Financial leverage ratio | 1.16 | 1.16 | 1.15 | 1.46 | 1.27 |
Lemaitre Vascular Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios remained at 0.00 in 2023, affirming that the company is primarily financed through equity rather than debt.
In comparison to 2020, where there was a slight increase in the debt ratios, the company quickly improved its solvency position back to very low or non-existent levels of debt. This signifies a prudent financial management strategy focused on maintaining a healthy balance sheet and reducing financial risk.
The financial leverage ratio, while fluctuating slightly over the years, indicates that the company's capital structure is mainly equity-based, with minimal reliance on debt to fund its operations. The decrease in the financial leverage ratio from 1.46 in 2020 to 1.16 in 2023 portrays a reduction in leverage and financial risk, further strengthening the company's solvency position.
Overall, Lemaitre Vascular Inc's solvency ratios exhibit a stable and secure financial footing, reflecting a conservative approach to managing debt and emphasizing a strong equity base to support its operations and growth.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 16.45 | 21.88 | — |
The interest coverage ratio for Lemaitre Vascular Inc was not available for the years ending December 31, 2023, and December 31, 2019. However, for the years 2021 and 2020, the company showed robust interest coverage ratios of 18.01 and 25.67, respectively.
The high interest coverage ratios in 2021 and 2020 indicate that Lemaitre Vascular Inc generated significantly more operating income relative to its interest expenses, signaling a strong ability to meet its interest obligations. This suggests that the company had comfortable buffer against the risk of default due to interest payments during these years.
It is advisable to monitor future interest coverage ratios to assess the company's ability to continue meeting its interest obligations and to ensure sustainability in servicing its debt.