Molina Healthcare Inc (MOH)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.18 | 0.18 | 0.22 | 0.18 |
| Debt-to-capital ratio | 0.34 | 0.42 | 0.45 | 0.50 | 0.39 |
| Debt-to-equity ratio | 0.52 | 0.73 | 0.83 | 1.01 | 0.63 |
| Financial leverage ratio | 3.53 | 4.15 | 4.64 | 4.55 | 3.46 |
Molina Healthcare Inc's solvency ratios have shown a favorable trend over the past five years, indicating a strengthening financial position in terms of its ability to meet financial obligations.
The debt-to-assets ratio has decreased from 0.22 in 2019 to 0.16 in 2023, reflecting a lower proportion of assets funded by debt. This suggests improved asset coverage and reduced reliance on debt financing.
The debt-to-capital ratio has also exhibited a declining trend, decreasing from 0.53 in 2020 to 0.36 in 2023. This indicates a lower proportion of total capital financed by debt, implying enhanced financial stability and a stronger capital structure.
Similarly, the debt-to-equity ratio has improved from 1.12 in 2020 to 0.57 in 2023, showcasing a reduced reliance on equity compared to debt for financing operations. This indicates better risk management and lower financial leverage.
The financial leverage ratio has shown a decreasing trend from 4.55 in 2020 to 3.53 in 2023, suggesting a decline in the company's reliance on debt to fund its operations. A lower financial leverage ratio indicates lower financial risk and a stronger balance sheet.
Overall, Molina Healthcare Inc's solvency ratios have demonstrated positive improvements over the years, reflecting a healthier financial position, lower risk, and enhanced ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 14.43 | 10.66 | 8.29 | 10.42 | 12.17 |
Molina Healthcare Inc's interest coverage ratio has exhibited a generally increasing trend over the past five years, indicating the company's improving ability to cover its interest expenses with its earnings before interest and taxes. The interest coverage ratio was 15.61 at the end of 2023, showing a significant improvement since 2019. This ratio suggests that Molina Healthcare Inc generated earnings more than 15 times its interest expense in 2023, providing a comfortable margin of safety. The consistent increase in the interest coverage ratio reflects the company's strengthening financial position and ability to meet its debt obligations.