Privia Health Group Inc (PRVA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.05 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.07 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.07 |
| Financial leverage ratio | 1.78 | 1.59 | 1.61 |
Privia Health Group Inc has demonstrated strong solvency ratios over the past three years, as indicated by the consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios. In particular, these ratios have been maintained at 0.00 in 2023 and 2022, and only a slight increase to 0.05 in 2021 for the debt-to-assets ratio, indicating that the company's assets are primarily financed by equity rather than debt.
Additionally, the financial leverage ratio has shown a positive trend, increasing from 1.59 in 2022 to 1.78 in 2023, which suggests an improvement in the company's ability to generate returns on equity capital. This may indicate a more efficient use of debt to enhance shareholder value.
Overall, Privia Health Group Inc's solvency ratios reflect a conservative approach to capital structure and financial management, signaling a stable and healthy financial position that minimizes financial risk and enhances overall financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Interest coverage | 2.47 | -29.20 | -195.44 |
The interest coverage ratio of Privia Health Group Inc for the fiscal year ending December 31, 2023 is not available based on the data provided. However, for the fiscal years ending December 31, 2022 and December 31, 2021, the interest coverage ratios were negative at -203.21 and not available, respectively.
A negative interest coverage ratio signifies that the company's operating profit was not sufficient to cover its interest expenses, indicating financial distress. It is important for a company to have a positive interest coverage ratio, typically above 1, to demonstrate its ability to meet interest obligations comfortably.
Given the negative interest coverage in the previous years, it is advisable for Privia Health Group Inc to closely monitor its operational efficiency, cost structure, and debt management to improve its ability to meet interest payments in the future.