Select Medical Holdings (SEM)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2.82 | 4.18 | 5.56 | 5.75 | 5.97 | 5.04 | 6.18 | 5.43 | 5.82 | 6.83 | 7.05 | 6.62 | 5.55 | 6.90 | 6.45 | 6.91 | 7.22 | 7.38 | 7.52 | 8.80 |
Select Medical Holdings has shown consistent strong solvency ratios over the past years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00, indicating that the company has no debt relative to its total assets, capital, and equity.
The financial leverage ratio, which measures the extent to which the company relies on debt to finance its operations, has been decreasing steadily from 8.80 in March 2020 to 2.82 in December 2024. This suggests that the company has been reducing its reliance on debt over time, becoming increasingly less leveraged.
Overall, Select Medical Holdings demonstrates a sound financial position with minimal debt obligations and decreasing reliance on debt financing, indicating a strong solvency position and stability in its financial structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.77 | 3.34 | 3.21 | 3.08 | 2.89 | 2.80 | 2.71 | 2.60 | 2.50 | 2.59 | 3.14 | 3.73 | 4.55 | 4.93 | 4.98 | 4.00 | 3.12 | 2.87 | 2.36 | 2.53 |
The interest coverage ratio of Select Medical Holdings has shown fluctuations over the stated period. The ratio indicates the company's ability to meet its interest obligations from its operating income. A higher ratio signifies a stronger ability to cover interest expenses.
From March 31, 2020, to December 31, 2021, the interest coverage ratio demonstrated an increasing trend, moving from 2.53 to 4.55. This improvement indicates that the company's operating income was sufficient to cover its interest expenses.
However, from March 31, 2022, to December 31, 2024, the interest coverage ratio started declining moderately. The ratio dropped from 3.73 to 1.77 by the end of December 31, 2024, suggesting a decrease in the company's ability to cover interest payments with its operating income.
Overall, while the interest coverage ratio initially showed improvement, it later declined, indicating a potential strain on the company's ability to service its interest obligations in the latter period of analysis. Further monitoring and analysis of the company's financial performance and debt management practices are advisable to assess the sustainability of its interest coverage ratio.