Masimo Corporation (MASI)
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 | 0.29 | 0.30 | 0.30 | 0.29 | 0.29 | 0.31 | 0.31 | 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 | 0.39 | 0.42 | 0.40 | 0.40 | 0.41 | 0.43 | 0.43 | 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 | 0.64 | 0.71 | 0.68 | 0.67 | 0.70 | 0.76 | 0.77 | 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 | 2.23 | 2.35 | 2.30 | 2.34 | 2.40 | 2.44 | 2.46 | 1.21 | 1.22 | 1.20 | 1.21 | 1.20 | 1.22 | 1.21 | 1.22 | 1.18 | 1.20 | 1.19 | 1.18 | 1.17 |
The solvency ratios of Masimo Corporation indicate its ability to meet its long-term financial obligations and measure the company's financial leverage. Based on the data provided, the debt-to-assets ratio has been relatively stable over the periods, ranging between 0.29 to 0.31. This ratio suggests that around 29% to 31% of Masimo's total assets are financed by debt.
The debt-to-capital ratio and debt-to-equity ratio have also shown consistency, with values hovering between 0.39 to 0.43 and 0.64 to 0.77, respectively. These ratios reflect the proportion of debt and equity in the company's capital structure. The increasing trend in these ratios indicates a higher reliance on debt financing, which may increase financial risk.
The financial leverage ratio, which measures the extent of a company's financial leverage, has fluctuated between 2.23 to 2.46. This shows that Masimo has been using leverage to finance its operations, with a higher ratio indicating higher financial risk and potential for higher returns.
Overall, the solvency ratios of Masimo Corporation demonstrate a stable debt structure with a consistent level of leverage over the periods analyzed. However, the increasing trend in the debt-to-capital and debt-to-equity ratios warrants attention to ensure the company maintains a healthy balance between debt and equity financing.
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 | 2.75 | 3.65 | 4.68 | 5.45 | 8.77 | 15.89 | 49.94 | 896.55 | 967.49 | 1,130.88 | 811.93 | 852.38 | 877.09 | 778.99 | 763.59 | 746.05 | 717.10 | 888.22 | 1,233.79 | 1,373.03 |
The interest coverage ratio measures a company's ability to meet its interest expenses with its earnings before interest and taxes (EBIT). Masimo Corporation's interest coverage ratio has fluctuated over the past few quarters.
In the most recent quarter, Masimo reported an interest coverage ratio of 2.75, indicating that the company's earnings before interest and taxes were able to cover its interest expenses 2.75 times over. This ratio has decreased from the previous quarter, suggesting a potential decrease in profitability or an increase in interest expenses.
Looking back over the past year, Masimo's interest coverage ratio has generally been healthy, with ratios well above 1, indicating that the company has had sufficient earnings to cover its interest costs. However, there was a substantial spike in the interest coverage ratio in the first quarter of 2022, reaching a very high level of 896.55. This could be due to an anomaly or one-time event that significantly inflated EBIT during that period.
Overall, while Masimo Corporation has generally demonstrated a strong ability to meet its interest obligations with its operating earnings, analysts may want to further investigate the significant fluctuations in the interest coverage ratio over time to assess any underlying factors affecting the company's financial performance and creditworthiness.