Lantheus Holdings Inc (LNTH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.82 | 2.02 | 2.95 | 1.86 | 1.69 |
Lantheus Holdings Inc has consistently maintained a strong solvency position over the years, as indicated by its debt-related ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been reported as 0.00% for each year from 2020 to 2024. This implies that the company has no significant debt obligations relative to its total assets, capital, or equity during this period.
However, it is important to note the fluctuation in the financial leverage ratio over the years. The financial leverage ratio increased from 1.69 in 2020 to 2.95 in 2022, before declining to 1.82 in 2024. The peak in 2022 indicates a higher level of financial risk compared to the other years. Nevertheless, the ratio's subsequent decrease suggests a reduction in the company's reliance on debt to finance its operations and investments, leading to a more stable financial structure by 2024.
Overall, Lantheus Holdings Inc's solvency ratios reflect a conservative approach to managing debt and a solid financial position, with a particular focus on maintaining a low level of debt relative to its assets, capital, and equity.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 22.91 | 21.53 | 4.72 | -8.68 | -0.21 |
The interest coverage ratio for Lantheus Holdings Inc has shown significant fluctuations over the past five years. As of December 31, 2020, the company had a negative interest coverage of -0.21, indicating that its operating income was insufficient to cover its interest expenses. This negative ratio suggests a potential risk of default on its interest payments.
By December 31, 2021, the interest coverage deteriorated further to -8.68, reflecting a worsening financial position where the company faced substantial challenges in meeting its interest obligations. Such a low ratio may raise concerns among creditors and investors about the company's ability to service its debt.
However, there was a turnaround in the company's financial performance by December 31, 2022, as the interest coverage improved to 4.72. This indicates that the company's operating income was more than sufficient to cover its interest expenses, providing a positive sign of financial health and debt repayment capability.
Subsequently, by December 31, 2023, the interest coverage ratio surged to 21.53, demonstrating a robust financial position with a comfortable margin to meet interest obligations. A high interest coverage ratio is generally considered favorable as it signifies a lower risk of default on debt payments and potential financial distress.
Finally, by December 31, 2024, the interest coverage ratio further improved to 22.91, indicating continued strength in the company's ability to cover interest expenses. This trend suggests a healthy balance between earnings and debt servicing capabilities, reflecting positively on Lantheus Holdings Inc's financial stability and solvency.
Overall, the fluctuating trend in Lantheus Holdings Inc's interest coverage ratio highlights the importance of closely monitoring a company's financial performance and debt management practices to assess its ability to meet interest obligations and sustain long-term financial health.