Neurocrine Biosciences Inc (NBIX)
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 | 0.16 | 0.18 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.20 | 0.22 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.24 | 0.28 |
| Financial leverage ratio | 1.44 | 1.46 | 1.39 | 1.51 | 1.54 |
The solvency ratios of Neurocrine Biosciences Inc, as indicated by the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, demonstrate a strong financial position with consistently decreasing debt levels over the years. The Debt-to-assets ratio decreased from 0.18 in 2020 to 0.00 in subsequent years, indicating that the company's total debt relative to its total assets has declined significantly. Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also show a decreasing trend from 2020 to 2022, reaching 0.00 by the end of the period.
Moreover, the Financial leverage ratio, which measures the company's financial leverage or the proportion of debt in its capital structure, decreased gradually from 1.54 in 2020 to 1.44 in 2024. This indicates that the company has been reducing its reliance on debt financing over time, which enhances its solvency and financial stability.
Overall, the solvency ratios suggest that Neurocrine Biosciences Inc has been effectively managing its debt levels, resulting in a healthier balance sheet and a lower risk of financial distress.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.51 | 73.20 | 31.13 | 4.93 | 4.25 |
Neurocrine Biosciences Inc's interest coverage ratio has shown varying trends over the years. In 2020, the company's interest coverage ratio was 4.25, indicating that it was generating sufficient operating income to cover its interest expenses. This ratio improved in 2021 to 4.93, further demonstrating the company's ability to meet its interest obligations comfortably.
However, in 2022, there was a significant spike in Neurocrine Biosciences Inc's interest coverage ratio to 31.13, suggesting a substantial increase in the company's operating income relative to its interest expenses. This trend continued in 2023, with a remarkable interest coverage ratio of 73.20, indicating a very strong ability to cover interest payments.
Despite the significant improvement in 2022 and 2023, the interest coverage ratio decreased in 2024 to 4.51. While still above 1, this decline may warrant further investigation to understand the factors leading to the decrease in operating income relative to interest expenses.
Overall, Neurocrine Biosciences Inc's interest coverage ratio has displayed fluctuations over the years, with a notable improvement in 2022 and 2023. Monitoring this ratio will be crucial to ensure the company maintains a healthy financial position and can meet its interest obligations effectively.