Supernus Pharmaceuticals Inc (SUPN)
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 | 0.22 | 0.24 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.32 | 0.33 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.46 | 0.49 |
| Financial leverage ratio | 1.32 | 1.39 | 1.92 | 2.07 | 2.02 |
The solvency ratios of Supernus Pharmaceuticals Inc indicate a strong financial position with a decreasing trend in debt ratios over the years from 2020 to 2024.
1. Debt-to-assets ratio: Supernus Pharmaceuticals Inc had a debt-to-assets ratio of 0.24 as of December 31, 2020, which decreased to 0.22 by December 31, 2021, and further decreased to 0.00 as of December 31, 2022, maintaining this low level in 2023 and 2024. This implies that the company's total debt relative to its total assets has decreased significantly, indicating a lower financial risk associated with debt obligations.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio decreased from 0.33 in 2020 to 0.32 in 2021 and dropped to 0.00 in 2022, remaining at a negligible level in both 2023 and 2024. This suggests that Supernus Pharmaceuticals Inc has a lower proportion of debt in its capital structure, which could indicate a lower reliance on debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio also showed a decreasing trend, from 0.49 in 2020 to 0.46 in 2021, reaching 0.00 by the end of 2022 and remaining at this level in both 2023 and 2024. This signifies that the company has a minimal level of debt compared to its equity, reflecting a stronger financial position and less reliance on external borrowing.
4. Financial leverage ratio: The financial leverage ratio declined from 2.02 in 2020 to 1.32 in 2024, with intermediate values of 2.07 in 2021, 1.92 in 2022, and 1.39 in 2023. This decreasing trend indicates that Supernus Pharmaceuticals Inc has been reducing its financial leverage over the years, resulting in a lower risk of financial distress and potentially higher financial stability.
Overall, the decreasing trend in these solvency ratios reflects Supernus Pharmaceuticals Inc's effective management of debt and capital structure, leading to a stronger and more stable financial position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | -1.00 | 6.52 | 4.72 | 9.68 |
The interest coverage ratio for Supernus Pharmaceuticals Inc has shown varying trends over the years. As of December 31, 2020, the company had a healthy interest coverage ratio of 9.68, indicating that it generated more than enough operating income to cover its interest expenses. However, by December 31, 2021, this ratio had decreased to 4.72, suggesting a potential decrease in the company's ability to meet its interest obligations from its operating profits.
In the following year, as of December 31, 2022, the interest coverage ratio improved to 6.52, indicating a better ability to cover interest expenses compared to the previous year. However, there was a significant downturn by December 31, 2023, with the interest coverage ratio falling to -1.00. A negative interest coverage ratio signifies that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial stability.
Unfortunately, the data for December 31, 2024, is not available, making it challenging to assess the current interest coverage position of Supernus Pharmaceuticals Inc. Overall, the fluctuating trend in the interest coverage ratio highlights the importance of monitoring the company's ability to meet its debt obligations and generate sufficient cash flows in the future.