Sarepta Therapeutics Inc (SRPT)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.35 | 0.40 | 0.40 | 0.40 | 0.49 | 0.49 | 0.37 | 0.36 | 0.35 | 0.41 | 0.40 | 0.39 | 0.33 | 0.25 | 0.24 | 0.23 | 0.37 | 0.26 | 0.25 |
| Debt-to-capital ratio | 0.54 | 0.57 | 0.62 | 0.62 | 0.63 | 0.80 | 0.78 | 0.60 | 0.56 | 0.54 | 0.70 | 0.69 | 0.67 | 0.57 | 0.44 | 0.40 | 0.38 | 0.45 | 0.30 | 0.28 |
| Debt-to-equity ratio | 1.18 | 1.32 | 1.62 | 1.67 | 1.73 | 4.01 | 3.58 | 1.52 | 1.28 | 1.18 | 2.33 | 2.25 | 2.04 | 1.30 | 0.79 | 0.67 | 0.60 | 0.83 | 0.44 | 0.39 |
| Financial leverage ratio | 3.35 | 3.80 | 4.07 | 4.22 | 4.29 | 8.13 | 7.33 | 4.13 | 3.57 | 3.39 | 5.67 | 5.69 | 5.16 | 3.92 | 3.12 | 2.76 | 2.57 | 2.23 | 1.71 | 1.59 |
Sarepta Therapeutics Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Sarepta's debt-to-assets ratio has been relatively stable around 0.35 to 0.40 over the recent quarters, suggesting that approximately 35% to 40% of its assets are funded by debt. This indicates a moderate level of leverage.
2. Debt-to-capital ratio: This ratio shows the percentage of the company's capital structure that comes from debt. Sarepta's debt-to-capital ratio has ranged from 0.54 to 0.63 in the past quarters, indicating that debt constitutes around 54% to 63% of the company's capital. This shows a moderate to slightly higher level of debt reliance.
3. Debt-to-equity ratio: This ratio reveals the company's degree of financial leverage and risk. Sarepta's debt-to-equity ratio has varied from 1.18 to 1.73 in recent quarters, implying that for every dollar of equity, the company has $1.18 to $1.73 of debt. The trend indicates a higher level of financial risk and leverage, particularly in the recent periods.
4. Financial leverage ratio: This ratio measures the extent to which the company relies on debt to finance its assets. Sarepta's financial leverage ratio has ranged from 3.35 to 4.29 over the quarters, demonstrating that the company has been using debt to amplify returns, but also increasing financial risk. The trend shows a significant level of financial leverage, especially in the most recent periods.
Overall, Sarepta Therapeutics Inc's solvency ratios reflect a moderate to high level of debt usage and financial leverage, with fluctuations seen in some ratios over the quarters. Investors and stakeholders should closely monitor these ratios to assess the company's solvency and financial health.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.72 | -22.63 | -27.20 | -25.84 | -24.09 | -11.96 | -10.35 | -6.86 | -4.59 | -5.60 | -6.33 | -8.89 | -10.34 | -8.23 | -11.09 | -11.24 | -16.72 | -22.28 | -20.02 | -16.48 |
The interest coverage ratio for Sarepta Therapeutics Inc fluctuated significantly over the past few quarters, indicating varying levels of ability to cover interest expenses with operating profits. In the most recent quarter ending March 31, 2024, the interest coverage ratio improved to 2.72, suggesting the company earned 2.72 times the amount needed to cover its interest payments. However, in the previous quarter, the ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses.
This inconsistency in the interest coverage ratio over the quarters raises concerns about the company's financial stability and ability to meet its debt obligations. It is important for investors and creditors to closely monitor Sarepta Therapeutics Inc.'s interest coverage ratio in conjunction with other financial indicators to assess the company's overall financial health and risk levels.