Myriad Genetics Inc (MYGN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.47 | 1.46 | 1.35 | 1.36 | 1.61 |
Myriad Genetics Inc's solvency ratios provide insight into the company's ability to meet its financial obligations and manage its debt levels.
- Debt-to-assets ratio: This ratio measures the proportion of the company's assets that are financed by debt. Myriad Genetics Inc has consistently maintained a debt-to-assets ratio of 0.00 across the years 2020 to 2024, indicating that the company does not rely on debt to finance its operations and acquisitions.
- Debt-to-capital ratio: The debt-to-capital ratio compares a company's total debt to its total capital (debt + equity). Similar to the debt-to-assets ratio, Myriad Genetics Inc's debt-to-capital ratio stands at 0.00 for the years 2020 to 2024, suggesting that the company's capital structure is not heavily reliant on debt financing.
- Debt-to-equity ratio: The debt-to-equity ratio evaluates the extent to which a company is using debt to finance its operations in relation to shareholders' equity. Myriad Genetics Inc maintains a debt-to-equity ratio of 0.00 for the years 2020 to 2024, indicating a minimal debt usage and a strong equity position in the company's capital structure.
- Financial leverage ratio: The financial leverage ratio measures the extent to which a company uses debt to finance its operations and investments. Myriad Genetics Inc's financial leverage ratio has shown a slight increase from 1.61 in 2020 to 1.47 in 2024. While the increase indicates a higher reliance on debt over the years, the ratio remains relatively low, suggesting manageable financial leverage.
Overall, based on the solvency ratios analyzed, Myriad Genetics Inc appears to have a conservative debt management strategy, maintaining low levels of debt relative to its assets, capital, and equity. The slight increase in the financial leverage ratio indicates a moderate shift towards debt financing, but the company's overall solvency position remains stable.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | -85.52 | -38.66 | -7.38 | -16.23 |
Based on the data provided, Myriad Genetics Inc's interest coverage ratio has been consistently negative over the years, indicating a concerning situation. In December 31, 2020, the interest coverage ratio was -16.23, and it declined further to -7.38 by December 31, 2021. The situation worsened significantly in December 31, 2022, with an interest coverage ratio of -38.66, and continued to deteriorate with a ratio of -85.52 by December 31, 2023. Interestingly, the interest coverage ratio was reported as 0.00 by December 31, 2024, which could suggest either a significant improvement or a change in the reporting methodology.
A negative interest coverage ratio indicates that the company is not generating enough operating income to cover its interest expenses, which raises concerns about the company's ability to meet its debt obligations. This could potentially lead to liquidity issues and even bankruptcy if not addressed promptly. Myriad Genetics Inc may need to reevaluate its debt structure, operational efficiency, and revenue generation strategies to improve its financial health and ensure sustainability in the long run.