Molina Healthcare Inc (MOH)

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	0.15	0.15	0.16	0.16	0.18	0.17	0.17	0.18	0.18	0.19	0.20	0.21	0.22	0.23	0.23	0.22	0.18	0.18	0.19	0.15
Debt-to-capital ratio	0.34	0.36	0.38	0.40	0.42	0.42	0.43	0.44	0.45	0.46	0.47	0.50	0.50	0.45	0.48	0.49	0.39	0.40	0.42	0.38
Debt-to-equity ratio	0.52	0.56	0.60	0.66	0.73	0.72	0.77	0.78	0.83	0.85	0.90	0.98	1.01	0.82	0.91	0.97	0.63	0.68	0.71	0.61
Financial leverage ratio	3.53	3.83	3.77	4.07	4.15	4.21	4.44	4.42	4.64	4.38	4.44	4.60	4.55	3.58	3.95	4.33	3.46	3.66	3.85	4.13

Molina Healthcare Inc's solvency ratios reflect the company's ability to meet its long-term obligations and manage its debt levels effectively.

The debt-to-assets ratio remained relatively stable over the quarters, ranging between 0.16 to 0.19. This indicates that the company finances a modest portion of its assets through debt, with the majority of its assets funded by equity.

The debt-to-capital ratio shows a consistent increasing trend from 0.36 in Q4 2022 to 0.46 in Q1 2022. This suggests that the proportion of the company's capital structure funded by debt has been increasing over time.

The debt-to-equity ratio increased significantly from 0.57 in Q4 2022 to 0.86 in Q1 2022, indicating higher reliance on debt financing and a decreasing cushion of equity to support the company's operations.

The financial leverage ratio also shows an upward trend, reaching a high of 4.42 in Q1 2022. This ratio indicates the extent to which the company's assets are financed by debt, with higher ratios signaling higher financial risk.

Overall, Molina Healthcare Inc's solvency ratios suggest a shift towards higher debt levels and decreased equity financing over the quarters, which may raise concerns about the company's long-term financial stability and ability to service its debt obligations.

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	14.43	12.50	12.16	11.42	10.66	10.92	9.74	8.75	8.29	7.58	8.36	10.13	10.42	13.30	13.68	12.35	12.17	12.05	11.86	11.29

Interest coverage measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a greater ability to meet interest obligations. In the case of Molina Healthcare Inc, we observe a consistent and improving trend in the interest coverage ratio over the past eight quarters. The interest coverage ratio has steadily increased from 9.36 in Q1 2022 to 15.61 in Q4 2023, indicating that Molina Healthcare has been more capable of servicing its interest expenses over time.

This positive trend suggests that the company's earnings before interest and taxes (EBIT) have been sufficient to cover its interest payments comfortably. It also indicates that Molina Healthcare has been successful in managing its debt levels and maintaining a healthy financial position. Investors and creditors may view this trend favorably as it demonstrates the company's financial strength and ability to meet its debt obligations. Overall, the increasing interest coverage ratio reflects positively on Molina Healthcare's financial performance and creditworthiness.