Owens & Minor Inc (OMI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 8.24 | 5.51 | 5.70 | 3.77 | 4.68 |
Owens & Minor Inc's solvency ratios, as indicated by the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have remained consistently low and stable over the years from 2020 to 2024.
- The debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, has consistently been at 0.00, indicating that the company has not used debt extensively to fund its operations.
- The debt-to-capital ratio, which assesses the proportion of a company's capital that is funded by debt, also remains at 0.00 for the same period, implying that the company relies more on equity financing than debt.
- The debt-to-equity ratio, which compares a company's total debt to its total equity, also stands at 0.00 across all years, signaling minimal reliance on debt for funding.
- The financial leverage ratio, showing the extent to which a company employs debt in its capital structure, has fluctuated but remained relatively low, with a peak at 8.24 in 2024. This indicates that while there has been some fluctuation in leverage, the overall level of debt in relation to equity remains manageable.
Overall, the solvency ratios of Owens & Minor Inc suggest that the company has maintained a conservative approach to debt management and has a strong financial position with limited financial risk associated with debt.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -0.04 | 0.71 | 1.08 | 6.75 | 2.21 |
The interest coverage ratio for Owens & Minor Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the interest coverage ratio was 2.21, indicating that the company generated operating income 2.21 times greater than its interest expenses, suggesting a moderate ability to meet interest obligations.
By December 31, 2021, the interest coverage ratio improved significantly to 6.75, signaling a stronger ability to cover interest payments with operating income. This increase may reflect improved operational performance or lower interest expenses.
However, the interest coverage ratio dropped sharply to 1.08 by December 31, 2022, suggesting a reduced ability to cover interest payments using operating income. This decline might raise concerns about the company's financial health and ability to meet its debt obligations.
The trend worsened further as of December 31, 2023, with the interest coverage ratio plummeting to 0.71. This indicates that the company's operating income was insufficient to cover its interest expenses, raising significant red flags regarding its financial stability and ability to service debt.
Moreover, the interest coverage ratio turned negative, reaching -0.04 by December 31, 2024. A negative interest coverage ratio suggests severe financial distress, where the company's operating income is insufficient to cover its interest obligations. This situation may lead to potential default on debt payments.
In summary, Owens & Minor Inc's interest coverage ratio has been inconsistent and declined to alarming levels in recent years, indicating potential financial challenges and increasing risk of default on debt payments.