Owens & Minor Inc (OMI)

Owens & Minor, Inc.'s solvency ratios indicate the company's ability to meet its long-term obligations and its reliance on debt financing.

The debt-to-assets ratio has fluctuated over the past five years, ranging from 0.27 to 0.46. A lower ratio suggests a smaller proportion of the company's assets are funded by debt, indicating lower financial risk.

The debt-to-capital ratio has also shown variability, with values between 0.50 and 0.77. This ratio reflects the extent to which debt is used to finance the company's operations compared to equity. A high ratio indicates higher financial leverage and potential risk.

The debt-to-equity ratio has experienced significant fluctuations, ranging from 1.01 to 3.26. A higher ratio indicates a greater reliance on debt financing relative to equity, which may increase financial risk and interest expense.

The financial leverage ratio, which includes all forms of liabilities, has also shown variability, ranging from 3.77 to 7.88. This ratio indicates the company's level of financial risk and the proportion of assets financed by debt. Higher values suggest a higher degree of financial leverage and potential volatility in earnings.

Overall, the trends in these solvency ratios suggest that Owens & Minor, Inc. has adjusted its capital structure over the years, with varying levels of reliance on debt to finance its operations. Investors and analysts should closely monitor these ratios to assess the company's long-term financial stability and risk profile.

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Coverage ratios

Owens & Minor, Inc.'s interest coverage has fluctuated over the past five years. In 2023, the interest coverage ratio stands at 1.29, indicating that the company's operating income was sufficient to cover its interest expenses 1.29 times. This represents a decrease from the previous year, suggesting a relatively weaker ability to cover interest payments compared to 2022.

The significant decline in interest coverage from 2022 to 2023 may raise concerns about the company's ability to meet its interest obligations comfortably. It is essential for investors and lenders to closely monitor this trend to assess the company's financial health and repayment capacity.

Furthermore, the 2023 interest coverage ratio of 1.29 is lower than the ratios in 2021 and 2020, indicating a less robust ability to service debt compared to those years. This downward trend may indicate increased financial risk or operational challenges that are impacting the company's profitability.

Overall, Owens & Minor, Inc.'s interest coverage ratio of 1.29 in 2023 suggests a potential cause for caution as it signifies a lower ability to cover interest expenses relative to previous years. Investors and stakeholders should investigate the underlying reasons for this decline and assess the company's overall financial stability and debt repayment capacity.