Bio-Techne Corp (TECH)

Based on the solvency ratios of Bio-Techne Corp provided, we observe that the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently remained at 0.00 over the past five years. This indicates that the company has not utilized debt significantly to finance its operations relative to its total assets, capital, or equity.

However, the financial leverage ratio has shown a slight declining trend from 1.47 in 2020 to 1.31 in 2024. This suggests that Bio-Techne Corp has been reducing its reliance on debt financing in relation to its equity over the years. A lower financial leverage ratio is generally viewed positively as it implies lower financial risk and a stronger solvency position.

Overall, these solvency ratios showcase Bio-Techne Corp's conservative approach towards managing its debt levels and maintaining a strong financial position, contributing to its stability and resilience in the long run.

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Coverage ratios

Interest coverage is a financial ratio that measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Bio-Techne Corp's interest coverage ratio has fluctuated over the past five years. In June 2024, the interest coverage ratio was 13.13, which suggests the company generated operating income 13.13 times higher than its interest expenses. This indicates a moderate ability to cover interest payments.

In comparison, the interest coverage ratio was significantly higher in June 2023 and June 2022, at 31.18 and 28.44 respectively, indicating a strong ability to meet interest obligations during those periods.

However, the interest coverage ratio dipped in June 2021 to 11.68, which may raise some concerns as it suggests a lower capacity to cover interest expenses. The ratio improved in June 2020 to 15.40, indicating a better ability to handle interest payments compared to the previous year.

Overall, Bio-Techne Corp's interest coverage ratio has shown variability over the years, with some periods indicating stronger financial health in terms of meeting interest obligations than others. Investors and analysts may want to further investigate the factors contributing to these fluctuations to assess the company's financial stability.