Select Medical Holdings (SEM)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.97 | 6.06 | 6.18 | 6.58 | 6.83 | 6.83 | 7.05 | 6.62 | 6.63 | 6.90 | 6.45 | 6.91 | 7.22 | 7.38 | 7.52 | 8.80 | 9.52 | 9.48 | 8.40 | 8.75 |
Select Medical Holdings Corporation's solvency ratios, which measure the company's ability to meet its long-term financial obligations, show a relatively stable trend over the quarters. The debt-to-assets ratio has hovered around the 0.5 mark, indicating that approximately half of the company's assets are financed by debt. This suggests a moderate level of leverage but remains within acceptable ranges.
The debt-to-capital ratio, which reflects the proportion of the company's capital structure financed by debt, has also remained relatively stable around 0.75 to 0.78, indicating that debt accounts for about three-quarters of the company's total capital. This suggests that Select Medical Holdings Corporation relies significantly on debt to fund its operations.
The debt-to-equity ratio, a measure of financial leverage, has fluctuated between 2.86 and 3.55 over the quarters. This ratio indicates that the company has a higher level of debt relative to equity, which may pose some risk, particularly in economic downturns or when facing difficulties in generating sufficient cash flows to service debt obligations.
Finally, the financial leverage ratio, which provides an overall view of the company's financial leverage, has also shown consistency in the range of 6 to 7. This ratio indicates that Select Medical Holdings Corporation has a high level of financial leverage, implying that a significant portion of the company's assets are funded through debt rather than equity.
In summary, while Select Medical Holdings Corporation's solvency ratios suggest a stable financial position, the high levels of debt relative to equity and assets indicate a considerable reliance on borrowed funds. This may present risks in terms of the company's ability to manage debt obligations, particularly during challenging economic conditions.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.64 | 2.56 | 2.49 | 2.38 | 2.31 | 2.46 | 3.00 | 4.23 | 4.91 | 5.38 | 5.40 | 4.19 | 3.42 | 2.87 | 2.31 | 2.16 | 2.06 | 1.99 | 2.02 | 2.04 |
The interest coverage ratio for Select Medical Holdings Corporation has exhibited a declining trend over the past four quarters, moving from 3.2 in Q2 2022 to 2.99 in Q4 2023. This indicates that the company's ability to meet its interest obligations from its operating income has weakened sequentially. The ratios above 1 suggest that the company is generating enough earnings to cover its interest expenses, but the decreasing values may signal a potential strain on the company's financial health and liquidity. It is important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt costs effectively in the upcoming periods.