National HealthCare Corporation (NHC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.12 | 0.12 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.13 | 0.13 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.56 | 1.59 | 1.42 | 1.43 | 1.44 | 1.45 | 1.45 | 1.44 | 1.46 | 1.48 | 1.50 | 1.50 | 1.55 | 1.58 | 1.61 | 1.68 | 1.71 | 1.73 | 1.74 | 1.69 |
National HealthCare Corporation's solvency ratios indicate its ability to meet long-term financial obligations and manage debt effectively. The Debt-to-assets ratio remained at 0.00% consistently throughout the reporting period until the most recent period where there was a slight increase to 0.08% as of September 30, 2024, suggesting a low level of debt relative to total assets.
The Debt-to-capital ratio also showed stability at 0.00% until September 30, 2024, when it increased to 0.12%. This ratio measures the proportion of debt relative to the total capital structure, indicating a small but increasing dependence on debt for financing.
The Debt-to-equity ratio was consistently at 0.00% until September 30, 2024, when it rose to 0.13%. This ratio indicates the extent to which debt is being used to finance operations compared to equity, with the increase indicating a higher reliance on debt financing.
The Financial leverage ratio, which reflects the company's debt levels in relation to equity, decreased from 1.69 in March 31, 2020, to 1.56 in December 31, 2024. This suggests a decreasing trend in leverage, indicating a lower dependency on debt financing over time.
Overall, while the recent uptick in debt ratios may indicate a slight increase in leverage, National HealthCare Corporation's solvency ratios generally demonstrate a conservative approach to debt management and a solid financial position.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 33.95 | 91.70 | 690.47 | 404.54 | 279.54 | 162.41 | 99.79 | 52.10 | 53.75 | 67.26 | 55.96 | 185.79 | 177.97 | 184.10 | 188.89 | 96.27 | 38.39 | 21.50 | 21.30 | 9.82 |
National HealthCare Corporation's interest coverage ratio has shown significant fluctuations over the past few years. The ratio has generally been healthy, indicating the company's ability to meet its interest payment obligations from its operating income.
Starting from March 31, 2020, with a ratio of 9.82, the interest coverage improved steadily, reaching its peak at 690.47 on June 30, 2024. This substantial increase reflects the company's increasing earnings relative to its interest expenses during this period.
However, there was a notable decrease in interest coverage from June 30, 2024, to September 30, 2024, dropping to 91.70. This sudden decline may suggest either a decrease in operating income or an increase in interest expenses during that quarter.
Overall, the interest coverage ratio for National HealthCare Corporation has displayed volatility, with some periods of exceptional strength and some periods of relative weakness. It is essential for the company to monitor and manage its interest coverage ratio effectively to ensure continued financial stability and ability to meet debt obligations.