Proto Labs Inc (PRLB)
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 | 1.11 | 1.11 | 1.15 | 1.12 | 1.15 |
Proto Labs Inc has consistently maintained a strong solvency position as indicated by its low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across all reported years from 2020 to 2024. This suggests that the company has very minimal debt in relation to its assets, capital, and equity, indicating a healthy financial structure.
Furthermore, the financial leverage ratio, which measures the company's use of debt to finance its operations, has also been relatively stable over the years, ranging from 1.11 to 1.15. This indicates that Proto Labs Inc has a conservative capital structure, with a higher proportion of equity financing compared to debt financing.
Overall, the solvency ratios suggest that Proto Labs Inc has a solid financial position with minimal reliance on debt to support its operations and growth, which bodes well for its long-term financial stability and ability to weather economic downturns.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 25.61 | 0.22 | 255.33 | 19.25 |
The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. It indicates how many times a company can cover its interest charges using its earnings before interest and taxes (EBIT).
Looking at Proto Labs Inc's interest coverage over the past few years, we can see a significant fluctuation in the ratio.
- As of December 31, 2020, the interest coverage ratio was 19.25, indicating that the company's EBIT was 19.25 times higher than its interest expenses. This suggests a healthy ability to cover interest payments.
- By December 31, 2021, the interest coverage ratio surged to 255.33, indicating a substantial improvement in the company's ability to cover its interest charges, reflecting strong earnings relative to interest expenses.
- However, by December 31, 2022, the interest coverage ratio dropped sharply to 0.22. This indicates a significant decline in the company's ability to cover its interest obligations, potentially raising concerns about its financial health and ability to service debt.
- Subsequently, by December 31, 2023, the interest coverage ratio increased to 25.61, showing a partial recovery in the company's ability to cover interest payments, but it still remains below the levels seen in previous years.
- Unfortunately, the data for December 31, 2024, is not available (denoted as "—"), making it challenging to assess the company's current interest coverage situation.
In conclusion, the interest coverage ratio for Proto Labs Inc has shown a volatile trend over the past few years, with fluctuations indicating changes in the company's financial health and ability to manage its debt obligations. It will be crucial for stakeholders to monitor this ratio closely to assess the company's financial stability and debt servicing capability.