Regeneron Pharmaceuticals Inc (REGN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.07 | 0.08 | 0.12 | 0.00 |
| Debt-to-capital ratio | 0.07 | 0.08 | 0.10 | 0.15 | 0.00 |
| Debt-to-equity ratio | 0.08 | 0.09 | 0.11 | 0.18 | 0.00 |
| Financial leverage ratio | 1.27 | 1.29 | 1.36 | 1.56 | 1.34 |
Regeneron Pharmaceuticals, Inc. has demonstrated strong solvency positions based on its solvency ratios over the past five years. The debt-to-assets ratio has shown a declining trend from 0.16 in 2020 to 0.08 in 2023, indicating that the company is using less debt to finance its assets relative to its total assets. This suggests enhanced financial stability and lower financial risk.
Similarly, the debt-to-capital ratio has also decreased from 0.20 in 2020 to 0.09 in 2023, illustrating that the company is relying less on debt for its overall capital structure. The decreasing trend in both the debt-to-assets and debt-to-capital ratios implies that Regeneron Pharmaceuticals, Inc. is becoming less leveraged and more financially sustainable.
The debt-to-equity ratio has followed a similar pattern, declining from 0.24 in 2020 to 0.10 in 2023. This indicates that the company's reliance on debt financing in relation to equity has reduced over the years, which is a positive signal for investors and creditors.
The financial leverage ratio, which measures the company's financial leverage in terms of assets to equity, has also shown a decreasing trend from 1.56 in 2020 to 1.27 in 2023. This implies that Regeneron Pharmaceuticals, Inc. is progressively relying less on debt to fund its operations and investments, which enhances its financial health and stability.
Overall, the solvency ratios of Regeneron Pharmaceuticals, Inc. demonstrate a consistent improvement in its financial soundness and risk management practices over the analyzed period. This suggests that the company's ability to meet its financial obligations and withstand economic uncertainties has been strengthening, reflecting positively on its overall financial sustainability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 58.52 | 82.80 | 163.75 | 67.97 | 81.43 |
The interest coverage ratio for Regeneron Pharmaceuticals, Inc. was not available for the most recent year. However, looking at historical data, the interest coverage ratio for the company has shown a fluctuating trend over the past five years. In 2022, the interest coverage ratio was at a favorable level of 155.34, indicating that the company generated ample earnings to cover its interest expenses. This was a significant improvement from the previous year, 2021, where the ratio stood at 57.93. The ratio further improved in 2021 compared to 2020, showcasing better financial stability and ability to meet interest obligations.
In general, a higher interest coverage ratio is favorable as it indicates that the company is more capable of meeting its interest payments from its operating profits. However, the downward trend seen from 2021 to 2022 should be noted as it may signify a change in the company's financial health. It would be important for stakeholders to monitor future interest coverage ratios to ensure the company's ability to handle its debt obligations effectively.