Somnigroup International Inc. (SGI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | — | 0.00 | 0.00 |
| Financial leverage ratio | 10.70 | 14.08 | — | 15.13 | 6.57 |
Somnigroup International Inc. has displayed a consistently strong solvency position over the years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio.
The debt-to-assets ratio has been maintained at 0.00 across all the years, suggesting that the company has not relied heavily on debt to finance its assets, indicating a low risk of insolvency related to debt obligations.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also been consistently at 0.00 or not available, implying that the company's capital structure is primarily equity-based, reducing financial risk and dependency on external borrowings.
The financial leverage ratio, which provides insights into the extent to which the company uses debt to finance its operations, shows fluctuations over the years. While the ratio was relatively high in 2020 at 6.57, indicating higher financial leverage, it decreased significantly to 15.13 in 2021, before becoming not available in 2022 and then declining to 14.08 in 2023 and 10.70 in 2024. These fluctuations suggest that the company may have adjusted its debt levels to optimize its capital structure and mitigate financial risk.
Overall, the solvency ratios of Somnigroup International Inc. reflect a stable and well-managed financial position with a prudent approach towards debt management and capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.74 | 4.65 | 6.60 | 13.43 | 6.88 |
The interest coverage ratio for Somnigroup International Inc. has varied over the years, indicating the company's ability to meet its interest payment obligations. In 2020, the interest coverage ratio was 6.88, demonstrating that the company generated 6.88 times the amount needed to cover its interest expenses. This improved significantly to 13.43 in 2021, indicating a stronger ability to meet interest payments.
However, the trend reversed in the following years, with the interest coverage ratio declining to 6.60 in 2022, 4.65 in 2023, and 4.74 in 2024. A decreasing trend in the interest coverage ratio suggests that Somnigroup International Inc. may be facing challenges in generating sufficient earnings to cover its interest obligations.
It is essential for the company to closely monitor its interest coverage ratio and take appropriate measures to improve it, such as increasing profitability, reducing debt, or refinancing at lower interest rates, to ensure financial stability and meet its debt obligations in the long run.