Merit Medical Systems Inc (MMSI)

Merit Medical Systems Inc has shown a declining trend in its solvency ratios over the years. The Debt-to-assets ratio has decreased from 0.21 in 2020 to 0.11 in 2022 but then increased sharply to 0.35 in 2023 before slightly reducing to 0.30 in 2024. This indicates that the company's reliance on debt to finance its assets has fluctuated significantly.

Similarly, the Debt-to-capital ratio has followed a similar pattern, decreasing from 0.26 in 2020 to 0.14 in 2022, then increasing to 0.41 in 2023 and reducing slightly to 0.35 in 2024. This ratio shows the proportion of debt used to fund the company's capital structure, and the fluctuations indicate changes in the company's debt levels.

The Debt-to-equity ratio has also shown a decreasing trend overall, from 0.36 in 2020 to 0.16 in 2022, then increasing to 0.68 in 2023 and subsequently decreasing to 0.53 in 2024. This ratio signifies the extent to which debt is used relative to equity in the company's capital structure, with the fluctuations reflecting changes in this balance over the years.

Finally, the Financial leverage ratio has fluctuated as well, with values of 1.74 in 2020, 1.45 in 2022, and 1.75 in 2024. This ratio measures the company's ability to meet its financial obligations and indicates the level of financial risk undertaken by the company.

Overall, the declining trend in solvency ratios highlights the shifting balance between debt and equity in Merit Medical Systems Inc's capital structure, indicating changes in the company's financial risk and leverage over the years.

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Coverage ratios

The interest coverage ratio of Merit Medical Systems Inc has shown fluctuations over the past five years. In December 2020, the ratio was negative, indicating that the company did not have sufficient earnings to cover its interest expenses. However, the ratio improved significantly in the following years, reaching 11.25 in December 2021, 14.04 in December 2022, and 8.23 in December 2023. This improvement suggests that the company's earnings have been more than adequate to cover its interest payments during these periods.

However, there was a slight decline in the interest coverage ratio to 4.99 in December 2024, which may indicate a potential increase in interest expenses relative to earnings. It is important for investors and creditors to monitor this ratio closely to ensure that the company remains capable of meeting its interest obligations from its operating income.

Overall, Merit Medical Systems Inc's interest coverage ratio has shown a mix of positive and negative trends, indicating varying levels of financial risk and stability over the years.