Molina Healthcare Inc (MOH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.15 | 0.18 | 0.18 | 0.22 |
| Debt-to-capital ratio | 0.39 | 0.34 | 0.42 | 0.45 | 0.50 |
| Debt-to-equity ratio | 0.65 | 0.52 | 0.73 | 0.83 | 1.01 |
| Financial leverage ratio | 3.48 | 3.53 | 4.15 | 4.64 | 4.55 |
Molina Healthcare Inc's solvency ratios have shown a generally improving trend over the years analyzed. The Debt-to-assets ratio decreased from 0.22 in 2020 to 0.15 in 2023, indicating a lower reliance on debt to finance its assets. Similarly, the Debt-to-capital ratio decreased from 0.50 in 2020 to 0.39 in 2024, showing that the company has been reducing its dependence on borrowed capital.
The Debt-to-equity ratio also improved from 1.01 in 2020 to 0.65 in 2024, suggesting that Molina Healthcare has been gradually reducing its debt relative to its equity over the years. The Financial leverage ratio followed a decreasing trend, declining from 4.55 in 2020 to 3.48 in 2024, indicating a reduction in financial risk as the company used less leverage in its capital structure.
Overall, the solvency ratios of Molina Healthcare Inc reflect a strengthening financial position and a prudent approach to managing debt, which may enhance the company's ability to meet its financial obligations and support future growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 14.47 | 14.43 | 10.66 | 8.29 | 10.42 |
The interest coverage ratio for Molina Healthcare Inc has been relatively stable over the past five years. It decreased from 10.42 in December 31, 2020, to 8.29 in December 31, 2021, reflecting a potential decline in the company's ability to cover its interest expenses with operating earnings. However, the ratio improved in the subsequent years, reaching 14.47 by December 31, 2024. This indicates a positive trend, suggesting that Molina Healthcare Inc's earnings are more than sufficient to cover its interest payments, demonstrating a strengthened financial position and lower interest rate risk. Overall, the company's interest coverage ratio has shown resilience and improvement over the five-year period, providing a favorable indication of its financial health.