Supernus Pharmaceuticals Inc (SUPN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.22 | 0.24 | 0.30 |
| Debt-to-capital ratio | 0.00 | — | 0.32 | 0.33 | 0.37 |
| Debt-to-equity ratio | 0.00 | — | 0.46 | 0.49 | 0.58 |
| Financial leverage ratio | 1.00 | — | 2.07 | 2.02 | 1.95 |
The solvency ratios of Supernus Pharmaceuticals Inc show a positive trend over the past five years, indicating improved financial health and reduced reliance on debt to finance its operations. The debt-to-assets ratio has consistently decreased from 0.30 in 2019 to 0.00 in 2023, suggesting that the company's total debt as a percentage of its total assets has been effectively managed and reduced to zero by the end of 2023.
Similarly, the debt-to-capital and debt-to-equity ratios have shown a declining trend from 0.37 and 0.58 in 2019 to 0.00 and 0.00 in 2023, respectively. These ratios indicate the proportion of debt in the company's capital structure and equity financing, with both ratios reaching zero by 2023, signaling a significant reduction in debt obligations and a stronger financial position.
Furthermore, the financial leverage ratio, which measures the company's reliance on debt financing, has decreased consistently from 2.07 in 2021 to 1.39 in 2023. This reduction indicates that Supernus Pharmaceuticals has been able to lower its financial leverage and improve its ability to meet its financial obligations through internal resources.
Overall, the solvency ratios reflect a positive financial trajectory for Supernus Pharmaceuticals Inc, portraying a decreasing dependence on debt and a strengthened balance sheet, which bodes well for the company's long-term financial sustainability and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -1.00 | 6.52 | 4.72 | 9.68 | 9.10 |
The interest coverage ratio of Supernus Pharmaceuticals Inc has been fluctuating over the past five years. The ratio stood at 137.06 in 2019, indicating a very strong ability to cover interest expenses with operating income. However, there was a significant decline in the ratio to 34.77 in 2020, which may indicate a temporary strain on the company's ability to cover interest payments.
In 2021, the interest coverage ratio further decreased to 3.39, raising concerns about the company's ability to meet its interest obligations with operating income. This could be a cause for potential financial distress.
Fortunately, there was an improvement in the ratio in 2022 and 2023, reaching 6.45 and 5.55 respectively. While the ratios have shown signs of recovery, it is important for investors and stakeholders to monitor future trends to ensure the company can sustainably meet its interest obligations.