Merit Medical Systems Inc (MMSI)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.30 0.32 0.34 0.34 0.35 0.16 0.18 0.11 0.11 0.13 0.14 0.15 0.14 0.17 0.17 0.19 0.21 0.21 0.23 0.25
Debt-to-capital ratio 0.35 0.36 0.38 0.39 0.41 0.19 0.22 0.14 0.14 0.16 0.18 0.19 0.18 0.21 0.22 0.24 0.26 0.27 0.30 0.32
Debt-to-equity ratio 0.53 0.57 0.62 0.65 0.68 0.23 0.28 0.16 0.16 0.19 0.22 0.23 0.23 0.27 0.29 0.32 0.36 0.37 0.43 0.47
Financial leverage ratio 1.75 1.80 1.85 1.88 1.93 1.47 1.53 1.44 1.45 1.50 1.52 1.54 1.59 1.62 1.65 1.69 1.74 1.79 1.85 1.86

The solvency ratios of Merit Medical Systems Inc reflect a strong financial position over the analyzed periods. The Debt-to-assets ratio has been consistently declining from 0.25 as of March 31, 2020, to 0.30 as of December 31, 2024. This indicates that the company's level of debt in relation to its assets has decreased, which is a positive sign of solvency.

Similarly, the Debt-to-capital ratio also exhibits a decreasing trend from 0.32 as of March 31, 2020, to 0.35 as of December 31, 2024. This demonstrates that the proportion of debt in the company's capital structure has been decreasing over time, showing an improving financial health in terms of solvency.

The Debt-to-equity ratio follows a similar pattern, decreasing steadily from 0.47 as of March 31, 2020, to 0.53 as of December 31, 2024. This declining trend signifies that the company is relying less on debt financing and has a stronger equity position, which is a positive indicator of solvency.

Furthermore, the Financial leverage ratio also displays a downward trend from 1.86 as of March 31, 2020, to 1.75 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been decreasing, leading to a stronger financial structure and solvency position.

Overall, the decreasing trends in the solvency ratios of Merit Medical Systems Inc suggest a positive trajectory in terms of managing debt levels and maintaining a robust financial position.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage 13.05 17.22 12.52 6.61 8.23 9.73 11.14 13.79 14.03 14.74 15.77 12.72 11.25 8.71 5.34 1.17 -0.32 -2.08 -2.06 0.48

The interest coverage ratio for Merit Medical Systems Inc has shown significant fluctuations over the period under review (from March 31, 2020, to December 31, 2024).

The interest coverage ratio, which measures a company's ability to meet its interest obligations on outstanding debt, dipped to concerning levels in mid-2020, with values below 0, indicating that the company had difficulties covering its interest expenses with its operating income during that period.

However, starting from March 31, 2021, the interest coverage ratio began to improve steadily, indicating a healthier financial position. The ratio increased consistently throughout 2021 and 2022, indicating that the company's earnings were sufficient to cover its interest costs more comfortably.

In the second half of 2022 and the first half of 2023, the interest coverage ratio remained relatively stable at a fairly healthy level, indicating that the company was managing its interest obligations well.

Towards the end of 2023 and into 2024, the interest coverage ratio experienced some fluctuations but generally remained above 5, suggesting that the company's operating income was significantly more than its interest expenses, reflecting a strong ability to meet its debt obligations from its earnings.

The most recent data as of December 31, 2024, shows a moderate decrease in the interest coverage ratio compared to the previous quarter, but it remains above 10, indicating that the company continues to generate sufficient earnings to cover its interest expenses comfortably.

Overall, the trend in Merit Medical Systems Inc's interest coverage ratio indicates a significant improvement in the company's ability to meet its interest obligations over the period, reflecting a stronger financial position and better debt management.