Option Care Health Inc (OPCH)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.44 | 2.40 | 2.37 | 2.27 | 2.34 | 2.25 | 2.25 | 2.32 | 2.25 | 2.30 | 2.32 | 2.36 | 2.37 | 2.54 | 2.57 | 2.59 | 2.61 | 2.69 | 3.03 | 3.00 |
Option Care Health Inc has consistently maintained a very strong solvency position based on the provided solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the reported periods, indicating that the company has no debt relative to its assets, capital, or equity.
Furthermore, the Financial leverage ratio for Option Care Health Inc has seen a decreasing trend over the reporting periods, starting at 3.00 on March 31, 2020, and decreasing to 2.44 by December 31, 2024. This indicates that the company has been effectively reducing its reliance on debt financing in relation to its equity, which is a positive sign for investors and creditors.
Overall, based on the solvency ratios provided, Option Care Health Inc appears to be in a strong financial position with minimal debt levels and decreasing financial leverage, suggesting a low risk of financial distress and a stable capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.74 | 6.04 | 5.95 | 7.58 | 7.51 | 7.54 | 6.94 | 5.00 | 4.84 | 4.51 | 4.12 | 3.55 | 2.57 | 2.03 | 1.63 | 1.17 | 1.03 | 0.91 | 0.38 | 0.25 |
Option Care Health Inc's interest coverage ratio has shown a fluctuating trend over the periods presented. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
Initially, in March 2020, the interest coverage ratio was very low at 0.25, indicating a potential inability to cover interest expenses. However, the ratio has shown improvement over time. By December 2021, the ratio increased to 2.57 and continued to climb further, reaching 7.58 by March 2024.
The increasing trend in the interest coverage ratio suggests that Option Care Health Inc's ability to meet its interest payments has strengthened over the years. A higher interest coverage ratio is generally seen as a positive sign, indicating that the company is more capable of servicing its debt and is at a lower risk of default.
However, the slight dip in the interest coverage ratio in the June 2024 quarter, from 7.58 to 5.95, may warrant some attention and further analysis to understand the factors contributing to this decline.
Overall, the upward trend in the interest coverage ratio demonstrates an improvement in Option Care Health Inc's financial health and its ability to manage its interest obligations effectively.