Stericycle Inc (SRCL)

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	0.24	0.23	0.23	0.26	0.26	0.29	0.29	0.30	0.30	0.31	0.32	0.32	0.33	0.36	0.38	0.41	0.42	0.41	0.41	0.41
Debt-to-capital ratio	0.34	0.33	0.33	0.36	0.37	0.40	0.40	0.41	0.40	0.41	0.41	0.42	0.43	0.47	0.49	0.54	0.54	0.53	0.53	0.52
Debt-to-equity ratio	0.52	0.48	0.48	0.57	0.58	0.66	0.66	0.69	0.68	0.69	0.70	0.72	0.77	0.87	0.94	1.16	1.17	1.12	1.11	1.09
Financial leverage ratio	2.12	2.12	2.10	2.18	2.20	2.30	2.30	2.30	2.28	2.26	2.22	2.26	2.30	2.41	2.48	2.79	2.76	2.70	2.69	2.67

Solvency ratios are essential metrics that help assess a company's ability to meet its long-term financial obligations. Let's analyze Stericycle Inc.'s solvency ratios based on the provided data:

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. A lower debt-to-assets ratio indicates less reliance on debt to fund operations. Stericycle Inc.'s debt-to-assets ratio has been relatively stable, ranging between 0.24 and 0.31 over the past eight quarters. This indicates that the company has maintained a conservative approach to debt utilization, with a significant portion of its assets financed by equity.

2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of a company's capital structure that is financed by debt. Stericycle Inc.'s debt-to-capital ratio has also shown consistency, fluctuating between 0.34 and 0.42 during the same period. This indicates that the company has a moderate level of debt in its capital structure, which is typical for many businesses.

3. Debt-to-equity ratio: The debt-to-equity ratio measures the proportion of a company's financing that comes from debt compared to equity. Stericycle Inc.'s debt-to-equity ratio has ranged from 0.51 to 0.72 over the past eight quarters, reflecting fluctuations in the company's capital structure. A higher debt-to-equity ratio suggests higher financial risk, as the company relies more on debt financing.

4. Financial leverage ratio: The financial leverage ratio demonstrates the extent to which a company uses debt to finance its operations. Stericycle Inc.'s financial leverage ratio has fluctuated between 2.10 and 2.30 over the past two years. A higher financial leverage ratio indicates higher financial risk and potential volatility in earnings, as the company has a higher level of debt relative to equity.

Overall, based on the solvency ratios analyzed, Stericycle Inc. appears to maintain a prudent level of debt in its capital structure, with a consistent approach to managing its financial obligations. It is essential for investors and stakeholders to monitor these ratios over time to assess the company's financial health and risk profile.

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	1.05	1.28	1.57	2.36	2.04	1.44	0.02	0.27	1.01	2.10	2.06	1.61	0.39	-3.83	-4.74	-3.69	-3.15	-3.99	-2.18	-2.02

Stericycle Inc.'s interest coverage ratio has demonstrated fluctuation over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).

In Q4 2023, Stericycle Inc. had an interest coverage ratio of 1.90, indicating that the company generated enough earnings to cover its interest expenses 1.90 times over. This suggests a moderate ability to meet interest payments. The trend over the last four quarters shows a relatively stable interest coverage ratio, ranging from 1.83 in Q4 2022 to 2.23 in Q1 2023.

However, Q2 2022 and Q3 2022 were challenging periods for Stericycle Inc., with an interest coverage ratio of -0.00 and 0.25, respectively. An interest coverage ratio below 1 indicates the company's earnings were insufficient to cover its interest expenses during those quarters, raising concerns about its financial health and ability to meet debt obligations.

Overall, while Stericycle Inc. has shown improved interest coverage ratios in recent quarters, it is essential to monitor this ratio closely to ensure the company maintains an adequate buffer to cover its interest obligations.