Select Medical Holdings (SEM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 5.97 | 6.83 | 6.63 | 7.22 | 9.52 |
The solvency ratios of Select Medical Holdings Corporation show fluctuations over the past five years. The debt-to-assets ratio has ranged from 0.44 to 0.51, indicating that, on average, between 44% and 51% of the company's assets have been financed through debt during this period.
The debt-to-capital ratio has varied between 0.74 and 0.82, suggesting that debt has comprised between 74% and 82% of the company's capital structure. This ratio indicates the extent to which debt is used to finance the company's operations compared to equity.
The debt-to-equity ratio has fluctuated between 2.86 and 4.47, reflecting how much debt the company has accumulated relative to its shareholders' equity. The decrease in this ratio from 2019 to 2020 followed by a gradual increase in subsequent years may indicate shifts in the company's capital structure and the level of financial risk it undertakes.
The financial leverage ratio has also displayed variability, ranging from 5.97 to 9.52. This ratio highlights the company's financial risk and indicates the extent to which it relies on debt to finance its assets. The downward trend in this ratio from 2019 to 2023 could imply a decrease in the company's dependence on debt financing to support its operations.
Overall, the solvency ratios suggest that Select Medical Holdings Corporation has been managing its debt levels relative to assets, capital, equity, and financial leverage, albeit with some fluctuations over the past five years. It is important for the company to continue monitoring and optimizing its capital structure to maintain a healthy balance between debt and equity financing.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.64 | 2.31 | 4.91 | 3.42 | 2.06 |
Based on the data provided, Select Medical Holdings Corporation's interest coverage ratio has fluctuated over the past five years. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
In 2023, the interest coverage ratio improved to 2.99 compared to the prior year, indicating that the company's operating income was sufficient to cover its interest expenses nearly three times over. This represents a positive trend in the company's ability to service its debt obligations.
However, it's worth noting that the interest coverage ratio was significantly higher in 2021 at 4.70, suggesting a stronger ability to cover interest expenses with operating income in that year.
Overall, Select Medical Holdings Corporation's interest coverage has shown variation in recent years, highlighting the importance of monitoring the company's financial performance and debt management strategies to ensure continued stability in meeting its interest obligations.