National HealthCare Corporation (NHC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.12 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.13 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.56 | 1.44 | 1.46 | 1.55 | 1.71 |
National HealthCare Corporation's solvency ratios indicate a strong financial position over the years. The Debt-to-assets ratio has remained consistently low at 0.00% from 2020 to 2023, showing that the company has minimal debt compared to its total assets. However, there was a slight increase to 0.08% in 2024, which is still relatively low.
The Debt-to-capital ratio has also been very low at 0.00% from 2020 to 2023, indicating that the company relies minimally on debt to finance its operations. In 2024, there was a slight increase to 0.12%, although it is still at a manageable level.
The Debt-to-equity ratio has followed a similar trend, staying at 0.00% from 2020 to 2023 before rising to 0.13% in 2024. This ratio shows that the company's equity comfortably surpasses its debt obligations.
The Financial leverage ratio has shown a decreasing trend from 1.71 in 2020 to 1.44 in 2023, indicating a reduction in the company's reliance on debt financing. However, there was a slight uptick to 1.56 in 2024, suggesting a slight increase in financial leverage.
Overall, the solvency ratios of National HealthCare Corporation reflect a prudent approach to managing debt and a strong capital structure that supports the company's financial stability and ability to meet its long-term obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 33.95 | 279.54 | 53.75 | 177.97 | 38.39 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. In the case of National HealthCare Corporation, the trend in interest coverage over the past five years has been positive and shows strong financial health.
As of December 31, 2020, the interest coverage ratio was 38.39, indicating that the company generated operating income nearly 38 times the amount needed to cover its interest expenses. This implies a comfortable buffer for meeting interest payments.
By December 31, 2021, the interest coverage ratio significantly improved to 177.97, reflecting a substantial increase in the company's ability to cover its interest costs. This sharp improvement suggests enhanced profitability and operational efficiency.
However, by December 31, 2022, the interest coverage ratio decreased to 53.75, indicating a slight decline in the company's ability to cover its interest payments compared to the previous year. Despite the decrease, this ratio is still at a healthy level, demonstrating that National HealthCare Corporation is managing its debt obligations effectively.
By December 31, 2023, the interest coverage ratio surged to 279.54, reaching its highest point in the last five years. This significant increase highlights the company's strong financial performance and its ability to generate sufficient operating income to comfortably cover its interest expenses.
Finally, as of December 31, 2024, the interest coverage ratio declined to 33.95, indicating a decrease from the previous year. While the decline may raise some concerns, it is essential to note that the ratio is still above 1, indicating that National HealthCare Corporation's operating income remains higher than its interest expenses.
Overall, the trend in National HealthCare Corporation's interest coverage ratio suggests a generally positive financial performance, with the company consistently demonstrating the ability to meet its interest obligations with its operating income over the past five years.