Somnigroup International Inc. (SGI)
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 |
| 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 |
| Financial leverage ratio | 10.70 | 8.09 | 11.12 | 14.04 | 14.08 | 21.23 | 30.99 | 104.06 | — | — | — | — | 15.13 | 12.04 | 7.99 | 10.83 | 6.57 | 7.57 | 12.82 | 15.86 |
Somnigroup International Inc. has maintained a consistently low debt-to-assets ratio, indicating a minimal reliance on debt to finance its assets throughout the reporting periods. The debt-to-capital and debt-to-equity ratios have also been negligible or not applicable, highlighting a healthy capital structure with little or no debt burden relative to its capital or equity base.
The financial leverage ratio, which measures the company's degree of financial leverage, shows fluctuation over time. Somnigroup International Inc. experienced significant leverage in the past but reduced it significantly in recent periods. However, there was a spike in the financial leverage ratio in March 2023, signifying a temporary increase in leverage during that period.
Overall, based on the solvency ratios analyzed, Somnigroup International Inc. appears to have a strong financial position with minimal debt obligations and a well-managed capital structure. It is important to monitor the financial leverage ratio closely to ensure that any fluctuations are managed effectively to maintain the company's overall solvency and financial health.
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 | 4.74 | 4.83 | 4.63 | 4.50 | 4.64 | 4.82 | 5.18 | 5.49 | 6.58 | 8.53 | 10.59 | 11.96 | 13.41 | 13.41 | 11.12 | 8.81 | 6.86 | 5.19 | 4.39 | 4.61 |
Interest coverage ratio is a financial metric that indicates a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Based on the data provided for Somnigroup International Inc., the interest coverage ratio has fluctuated over the quarters. In March 2020, the ratio was 4.61, indicating that the company's EBIT was 4.61 times its interest expense. The ratio decreased slightly to 4.39 in June 2020 before showing an improving trend through the subsequent quarters.
By December 2021, the interest coverage ratio had increased significantly to 13.41, suggesting a strong ability to cover interest payments. However, the ratio started to decline in the following periods but remained above 4, which generally indicates a stable interest coverage.
The interest coverage ratio dipped below 5 by March 2024, signaling a potential decrease in the company's ability to cover interest expenses. It is essential for investors and creditors to monitor this ratio closely as it can indicate the company's financial health and ability to manage its debt obligations.