OSI Systems Inc (OSIS)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019
Debt-to-assets ratio 0.07 0.07 0.08 0.08 0.09 0.09 0.10 0.10 0.03 0.03 0.00 0.00 0.20 0.21 0.21 0.21 0.21 0.21 0.20 0.20
Debt-to-capital ratio 0.13 0.14 0.15 0.16 0.16 0.17 0.18 0.19 0.07 0.07 0.00 0.00 0.30 0.31 0.32 0.33 0.32 0.32 0.32 0.32
Debt-to-equity ratio 0.15 0.16 0.17 0.19 0.19 0.21 0.22 0.23 0.08 0.08 0.00 0.00 0.43 0.44 0.46 0.48 0.47 0.48 0.47 0.48
Financial leverage ratio 2.24 2.25 2.24 2.19 2.14 2.22 2.26 2.35 2.26 2.36 2.33 2.32 2.16 2.15 2.21 2.28 2.22 2.33 2.33 2.38

OSI Systems Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable between 0.07 and 0.10 over the past few quarters, suggesting that the company's level of debt in relation to its total assets is low and has not significantly increased.

The debt-to-capital and debt-to-equity ratios have also shown consistency, with slight increases over time. These ratios measure the proportion of debt in the company's capital structure and shareholder equity, respectively. The gradual increase in these ratios may indicate an increase in the company's reliance on debt financing compared to equity financing.

The financial leverage ratio, which reflects the proportion of the company's assets that are financed by debt, has fluctuated within a relatively narrow range but has shown an upward trend over the quarters. This implies that the company is increasingly using debt to support its operations and investments.

Overall, OSI Systems Inc's solvency ratios suggest that the company has maintained a relatively conservative approach to debt management, with a low level of debt relative to assets. However, the slight upward trend in the debt ratios indicates a potential shift towards a slightly higher debt reliance in its capital structure in recent quarters.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019
Interest coverage 6.79 7.22 7.02 6.24 6.75 7.02 8.38 11.12 13.59 10.87 9.57 8.47 6.90 6.15 5.46 5.31 5.59 5.64 5.81 5.54

The interest coverage ratio for OSI Systems Inc has displayed some fluctuations over the past few quarters. The ratio has generally been above 5, indicating that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses.

Looking at the trend, the interest coverage ratio has shown a gradual increase from around 5.31 in March 2020 to a peak of 13.59 in September 2022. This suggests that the company's ability to cover its interest payments improved significantly during this period.

However, the ratio declined to 6.24 in September 2023 and has continued to trend downwards since then, reaching 6.79 in June 2024. While the current ratio of 6.79 is still relatively healthy, the downward trend may indicate potential challenges in generating enough earnings to cover interest expenses in the future.

Overall, it is important for investors and stakeholders to monitor OSI Systems Inc's interest coverage ratio closely, as a sustained decline could signal possible financial distress or reduced profitability.