Myriad Genetics Inc (MYGN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.00 | 0.00 | 0.16 | 0.15 |
| Debt-to-capital ratio | 0.05 | 0.00 | 0.00 | 0.20 | 0.18 |
| Debt-to-equity ratio | 0.05 | 0.00 | 0.00 | 0.24 | 0.21 |
| Financial leverage ratio | 1.46 | 1.35 | 1.36 | 1.53 | 1.44 |
Myriad Genetics, Inc. has consistently maintained low levels of debt relative to its assets, capital, and equity over the past five years. The debt-to-assets ratio has shown an increasing trend from 0.00 in 2021 to 0.03 in 2023, indicating that the company is using a small portion of its assets to finance its operations through debt. Similarly, the debt-to-capital and debt-to-equity ratios have also increased slightly over the same period, but remain at low levels compared to previous years.
The financial leverage ratio, which measures the company's ability to meet its financial obligations through debt financing, has shown fluctuations but has generally remained relatively stable. The ratio was 1.46 in 2023, indicating that Myriad Genetics is using debt as part of its capital structure, but not to an extent that would significantly increase its financial risk.
Overall, the solvency ratios suggest that Myriad Genetics, Inc. maintains a conservative approach to managing its debt levels, which may indicate a strong financial position and lower financial risk for the company.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -89.41 | -42.94 | -7.65 | -19.67 | 1.02 |
The interest coverage ratio measures a company's ability to meet its interest payments on its outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses with operating income.
In the case of Myriad Genetics, Inc., the interest coverage ratio has shown a notable decline over the years, indicating increasing difficulties in meeting interest obligations. The ratio has been negative in recent years, signaling that the company's operating income is insufficient to cover its interest payments.
The drastic decrease in the interest coverage ratio from -21.47 in 2021 to -361.50 in 2023 is particularly alarming, highlighting a significant deterioration in the company's financial health. It suggests that Myriad Genetics may be facing challenges in generating enough income to manage its interest expenses, which can lead to financial distress and increased risk for lenders.
Overall, the trend of declining and negative interest coverage ratios for Myriad Genetics, Inc. raises concerns about its ability to service its debt obligations and underscores the importance of monitoring the company's financial performance closely.