Bio-Techne Corp (TECH)

The analyzed solvency ratios for Bio-Techne Corp over the period from June 30, 2021, through June 30, 2025, reflect a consistent pattern regarding the company's capital structure and leverage.

The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all reported as zero across all the specified years. These indicators suggest that the company has not utilized debt in its capital structure during this period, implying a debt-free financial position. The absence of indebtedness results in these ratios remaining at zero, indicating no reliance on external debt financing.

In contrast, the financial leverage ratio exhibits relatively steady levels, decreasing slightly from 1.44 in June 2021 to 1.31 in June 2024 before marginally increasing again to 1.33 by June 2025. This ratio measures the degree to which a company's assets are financed through debt relative to equity. Since the ratios indicating debt are zero, the leverage ratio likely reflects other forms of financial structure or accounting factors rather than traditional debt levels, perhaps attributable to operational or internal financing mechanisms.

Overall, the data indicates that Bio-Techne Corp maintains a highly conservative capital structure with negligible or no current debt obligations, contributing to strong solvency and financial stability. The stability of the leverage ratio further supports a low-risk profile concerning financial leverage during the observed years.

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Coverage ratios

The interest coverage ratios for Bio-Techne Corp over the specified period exhibit a notable fluctuation. As of June 30, 2021, the ratio stood at 12.24, indicating that the company's earnings before interest and taxes (EBIT) were more than sufficient to cover interest expenses approximately twelve times over. This high level of coverage suggests a comfortable ability to service interest obligations at that time.

In the following year, June 30, 2022, the ratio increased significantly to 28.21, reflecting a marked improvement in the company's capacity to meet interest payments, likely driven by strengthened EBIT or reduced interest obligations. This upward trend continued into June 30, 2023, with the ratio reaching 31.50, its peak within this period, further emphasizing very robust earnings relative to interest expenses.

However, a sharp decline is evident by June 30, 2024, with the ratio falling to 12.62. This suggests a considerable reduction in earnings coverage of interest expenses, though it still remains well above the generally considered safety threshold. The substantial decrease from the previous year's peak may indicate a decrease in earnings, an increase in interest expenses, or a combination of both.

By June 30, 2025, the ratio drops to 0.00, implying that the company either reported no earnings before interest and taxes or entirely ceased to generate sufficient operating income to cover interest expenses, potentially due to operational challenges, extraordinary items, or a strategic shift in accounting recognition. This situation raises significant concerns regarding the company's ability to service its debt obligations without alternative sources of income or restructuring.

Overall, the trend in Bio-Techne Corp's interest coverage ratio shows a period of strong financial health and liquidity up to mid-2023, followed by a notable deterioration through 2024 and into 2025, culminating in a situation where interest obligations are no longer covered by operating earnings.