Option Care Health Inc (OPCH)
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 | 2.44 | 2.26 | 2.25 | 2.37 | 2.61 |
Option Care Health Inc's solvency ratios indicate a strong financial position in terms of debt management. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been consistently at 0.00 over the years 2020 to 2024, suggesting that the company has no debt relative to its assets, capital, and equity. This indicates that the company relies more on equity financing rather than debt financing.
Furthermore, the financial leverage ratio, which measures the extent to which the company has used debt to finance its assets, shows a slight decrease from 2.61 in 2020 to 2.44 in 2024. This decreasing trend suggests that the company has been reducing its reliance on debt to fund its operations, potentially reducing its financial risk.
Overall, based on these solvency ratios, Option Care Health Inc appears to have a robust financial position with minimal debt levels and prudent debt management practices, which may contribute to long-term financial stability and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.78 | 8.21 | 4.84 | 2.57 | 0.80 |
The interest coverage ratio for Option Care Health Inc has shown an improving trend over the years as of December 31, with values increasing from 0.80 in 2020 to 6.78 in 2024. This signifies that the company's ability to cover its interest expenses with its operating income has strengthened significantly. The notable rise in the interest coverage ratio indicates that Option Care Health Inc has been generating more operating income relative to its interest expenses, which is a positive indicator of the company's financial health and ability to meet its debt obligations. It suggests that the company is becoming more efficient in managing its debt payments and poses lower risks in terms of debt default.