Pacira BioSciences, Inc. (PCRX)

Pacira BioSciences, Inc. demonstrates strong solvency ratios based on the provided data. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio consistently show values of 0.00 across the years from 2020 to 2024. This suggests that the company has no significant debt in relation to its assets, capital, or equity during this period.

Additionally, the Financial leverage ratio, which measures the company's use of debt to support its operations and growth, demonstrates some variability but generally remains at moderate levels. The ratio decreases from 2.06 in 2020 to 1.81 in 2023 before rising slightly to 2.00 in 2024. These values indicate that Pacira BioSciences is effectively managing its financial leverage, with the ratio remaining within a reasonable range throughout the years analyzed.

Overall, the consistent low debt ratios and reasonable financial leverage ratio suggest that Pacira BioSciences has a strong financial position and is maintaining a healthy balance between debt and equity in its capital structure.

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Coverage ratios

Based on the provided data, Pacira BioSciences, Inc.'s interest coverage ratio has shown fluctuation over the years. In 2020, the ratio was 2.01, indicating that the company earned just enough operating income to cover its interest expenses. By the end of 2021, the ratio improved to 2.83, suggesting an increase in the company's ability to cover its interest payments comfortably.

However, in 2022, the interest coverage ratio dropped notably to 1.33, signaling a potential strain on Pacira BioSciences' ability to meet its interest obligations from its operating income alone. The significant decline in this ratio could raise concerns about the company's financial health and its ability to manage debt levels effectively.

By the end of 2023, the interest coverage ratio recovered significantly to 4.04, indicating a strong improvement in the company's ability to cover its interest expenses with operating income. This positive trend suggests better financial performance and a reduced risk of default due to interest payment obligations.

Lastly, as of December 31, 2024, the interest coverage ratio turned negative at -3.70. A negative interest coverage ratio indicates that the company's operating income is insufficient to cover its interest expenses, which could raise red flags regarding Pacira BioSciences' financial stability and debt servicing capabilities.

In conclusion, Pacira BioSciences' interest coverage ratio has shown varied performance over the years, with improvements in some periods and concerning declines in others. Investors and stakeholders should closely monitor these fluctuations to assess the company's ability to meet its interest obligations and manage its financial leverage effectively.