National HealthCare Corporation (NHC)
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 | 0.00 | 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 | 1.44 | 1.46 | 1.55 | 1.71 | 1.65 |
Based on the provided solvency ratios of National Healthcare Corp., we can observe a consistent trend of decreasing leverage and debt levels over the five-year period from 2019 to 2023. The debt-to-assets ratio remained stable at 0.00 in 2023 and 2022, signaling that the company operates with minimal debt relative to its total assets. Similarly, the debt-to-capital and debt-to-equity ratios also exhibit a decreasing pattern, suggesting a lower reliance on debt for financing operations.
Furthermore, the financial leverage ratio decreased from 1.65 in 2019 to 1.44 in 2023, indicating a reduction in the company's financial leverage and potential financial risk. A lower financial leverage ratio implies that National Healthcare Corp. has a higher proportion of equity in its capital structure compared to debt.
Overall, the solvency ratios of National Healthcare Corp. reflect a prudent approach to managing debt and leverage, which enhances the company's financial stability and ability to meet its financial obligations. This improvement in solvency metrics over the years indicates a stronger financial position and lower risk for the company.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 279.54 | 53.75 | 177.97 | 38.39 | 29.15 |
As the interest coverage ratio is not provided for National Healthcare Corp. for the years 2019 to 2023, it is not possible to evaluate the company's ability to meet its interest obligations using this metric. The interest coverage ratio is a key financial ratio that indicates a company's capacity to pay its interest expenses on outstanding debt. A higher interest coverage ratio suggests a stronger ability to cover interest payments from operating income. In the absence of this information, further analysis or access to additional data is required to assess the company's financial health and risk related to interest obligations.