Option Care Health Inc (OPCH)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.33 | 0.34 | 0.38 | 0.42 | 0.49 |
| Debt-to-capital ratio | 0.43 | 0.43 | 0.47 | 0.52 | 0.58 |
| Debt-to-equity ratio | 0.74 | 0.76 | 0.90 | 1.10 | 1.41 |
| Financial leverage ratio | 2.26 | 2.25 | 2.37 | 2.61 | 2.86 |
Option Care Health Inc.'s solvency ratios have shown a positive trend over the past five years. The debt-to-assets ratio decreased from 0.50 in 2019 to 0.33 in 2023, indicating that the company has become more efficient in managing its debt in relation to its total assets. Similarly, the debt-to-capital ratio saw a decline from 0.59 in 2019 to 0.43 in 2023, displaying an improvement in the company's ability to finance its operations through a mix of debt and equity.
The debt-to-equity ratio also demonstrated a downward trend from 1.42 in 2019 to 0.75 in 2023, suggesting that Option Care Health Inc. has reduced its reliance on debt financing in relation to equity. This trend indicates a strengthening financial position and reduced financial risk for the company.
Furthermore, the financial leverage ratio decreased from 2.86 in 2019 to 2.26 in 2023, indicating that the company's reliance on debt to finance its operations has decreased over the years. This reduction in financial leverage signifies improved financial stability and solvency for Option Care Health Inc.
Overall, the declining trend in all solvency ratios suggests that Option Care Health Inc. has been effectively managing its debt levels and enhancing its financial health over the past five years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.00 | 4.82 | 2.74 | 0.95 | -0.06 |
Option Care Health Inc.'s interest coverage has shown a positive trend over the past five years, indicating an improving ability to cover its interest obligations. The interest coverage ratio has increased from a low of 0.03 in 2019 to 6.25 in 2023, reflecting a significant enhancement in the company's ability to meet its interest payments.
The steady improvement in the interest coverage ratio signifies 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 stability. This suggests that the company is better positioned to service its debt and is at lower risk of default.
The significant increase in interest coverage from 2022 to 2023 also demonstrates that Option Care Health Inc. has made notable strides in managing its debt obligations more effectively. Overall, the trend in interest coverage reflects improved financial performance and better risk management by the company over the past five years.