Envista Holdings Corp (NVST)

The solvency ratios of Envista Holdings Corp over the past five years indicate a generally stable financial position in terms of leverage and debt management. The debt-to-assets ratio has ranged from 0.20 to 0.26 during this period, with a slight increase in 2020 followed by a decrease in subsequent years, suggesting effective management of debt in relation to total assets.

Similarly, the debt-to-capital ratio has shown a consistent trend, ranging from 0.24 to 0.33, indicating a relatively stable proportion of debt financing in the company's capital structure. The debt-to-equity ratio has followed a similar pattern, fluctuating between 0.32 and 0.48, with a noticeable decrease in 2021 and 2022, reflecting a lower reliance on debt relative to equity.

The financial leverage ratio, which measures the extent of financial leverage in the company, has also shown a consistent trend, ranging from 1.57 to 1.85. This ratio indicates that Envista Holdings Corp has maintained an average leverage level over the years, with a slight increase in 2020 followed by a modest decline in subsequent years.

Overall, based on the solvency ratios analyzed, Envista Holdings Corp appears to have managed its debt levels effectively, maintaining a relatively stable financial position with regards to leverage and debt utilization.

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Coverage ratios

The interest coverage ratio of Envista Holdings Corp has displayed fluctuations over the past five years. In 2019, the ratio was exceptionally high at 79.29, indicating a strong ability to cover interest expenses with operating income. However, the ratio significantly dropped to 0.53 in 2020, signaling a potential strain on the company's ability to meet interest obligations using its earnings alone.

Subsequently, there was a notable improvement in 2021 with the interest coverage ratio increasing to 5.66, suggesting a better position in meeting interest payments. This improvement continued in 2022, with the ratio further increasing to 8.31, reflecting an enhanced capacity to cover interest expenses. In the most recent year, 2023, the interest coverage ratio stood at 4.57, indicating that the company's operating income could cover its interest expense approximately 4.57 times.

Overall, while there have been fluctuations in Envista Holdings Corp's interest coverage ratio in recent years, the company generally demonstrated an ability to cover its interest expenses adequately, with improvements observed in 2021 and 2022 following a significant decline in 2020.