Sarepta Therapeutics Inc (SRPT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.49 | 0.35 | 0.33 | 0.37 |
| Debt-to-capital ratio | 0.57 | 0.80 | 0.54 | 0.57 | 0.45 |
| Debt-to-equity ratio | 1.32 | 4.01 | 1.18 | 1.30 | 0.83 |
| Financial leverage ratio | 3.80 | 8.13 | 3.39 | 3.92 | 2.23 |
Sarepta Therapeutics Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
- The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. Sarepta's ratio has fluctuated over the years, ranging from 0.33 to 0.49, with the latest ratio at 0.35 as of December 31, 2023. This indicates that, on average, 35% of the company's assets are funded by debt.
2. Debt-to-capital ratio:
- The debt-to-capital ratio indicates the percentage of a company's capital that is financed by debt. Sarepta's ratio has varied from 0.45 to 0.80, with the latest ratio standing at 0.57 as of December 31, 2023. This suggests that 57% of the company's capital is derived from debt.
3. Debt-to-equity ratio:
- The debt-to-equity ratio compares a company's total debt to its shareholders' equity, reflecting the portion of funding provided by creditors relative to shareholders. Sarepta's ratio has shown significant fluctuations, ranging from 0.83 to 4.01, with the latest ratio at 1.32 as of December 31, 2023. This implies that for every dollar of equity, the company has $1.32 in debt.
4. Financial leverage ratio:
- The financial leverage ratio assesses the extent to which a company utilizes debt to finance its operations. Sarepta's financial leverage ratio has varied from 2.23 to 8.13, with the latest ratio at 3.80 as of December 31, 2023. This suggests that the company has $3.80 of debt for every dollar of equity.
Overall, based on these solvency ratios, Sarepta Therapeutics Inc has managed to maintain a moderate level of debt relative to its assets, capital, and equity over the years, indicating a balanced approach to financing its operations. Investors and creditors may find these ratios useful in assessing the company's long-term financial stability and risk.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -22.63 | -11.96 | -5.60 | -8.23 | -22.28 |
The interest coverage ratio for Sarepta Therapeutics Inc has shown a volatile trend over the past five years. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses in each of the years presented.
The significant negative ratios suggest that Sarepta Therapeutics Inc has faced challenges in generating enough operating income to meet its interest obligations, raising concerns about its ability to service its debt. This could indicate financial distress and may raise red flags for investors and creditors regarding the company's financial health and sustainability.
It is important for Sarepta Therapeutics Inc to closely monitor and address its interest coverage ratio by improving profitability, reducing debt levels, or negotiating better terms with creditors to ensure its long-term financial stability.