Neurocrine Biosciences Inc (NBIX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.16 | 0.18 | 0.31 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.20 | 0.22 | 0.39 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.24 | 0.28 | 0.64 |
| Financial leverage ratio | 1.46 | 1.39 | 1.51 | 1.54 | 2.05 |
The solvency ratios of Neurocrine Biosciences, Inc. have shown a positive trend over the past five years. The debt-to-assets ratio has decreased consistently from 0.31 in 2019 to 0.05 in 2023, indicating that the company's reliance on debt to finance its assets has significantly reduced.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a decreasing trend over the years, reaching 0.07 and 0.08 respectively in 2023. These lower ratios suggest that Neurocrine Biosciences has been effectively managing its debt levels in relation to its capital and equity, indicating a stronger financial position and lower financial risk.
Furthermore, the financial leverage ratio has also declined steadily from 2.05 in 2019 to 1.46 in 2023. This implies that the company's reliance on debt to fund its operations has decreased, indicating improved financial stability and a more sustainable capital structure.
Overall, the decreasing trend in solvency ratios for Neurocrine Biosciences, Inc. implies that the company has been successfully reducing its debt levels and strengthening its financial position over the years, which bodes well for its long-term solvency and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 73.20 | 31.13 | 4.93 | 4.25 | 2.45 |
Neurocrine Biosciences, Inc.'s interest coverage has shown a strong improvement over the past five years. The interest coverage ratio has steadily increased from 7.09 in 2019 to 85.83 in 2023. This significant improvement indicates that the company's ability to cover its interest expenses with operating income has been robust and has strengthened over time.
The company's interest coverage ratio of 85.83 in 2023 suggests that Neurocrine Biosciences, Inc. is comfortably able to meet its interest obligations more than 85 times using its operating income. This high level of interest coverage indicates a strong financial position and a healthy ability to manage debt obligations.
Overall, the trend in Neurocrine Biosciences, Inc.'s interest coverage ratio indicates a positive financial performance and efficient management of interest expenses, highlighting the company's ability to generate sufficient income to cover its interest payments.