Teleflex Incorporated (TFX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.23 | 0.25 | 0.33 | 0.29 |
| Debt-to-capital ratio | 0.28 | 0.29 | 0.32 | 0.42 | 0.38 |
| Debt-to-equity ratio | 0.39 | 0.40 | 0.46 | 0.71 | 0.62 |
| Financial leverage ratio | 1.70 | 1.72 | 1.83 | 2.14 | 2.12 |
Teleflex Incorporated has shown a consistent improvement in its solvency ratios over the past five years, indicating a stronger financial position.
The Debt-to-assets ratio has decreased from 0.30 in 2019 to 0.24 in 2023, indicating that the company's total liabilities are a smaller proportion of its total assets. This suggests that Teleflex has become more efficient in managing its debt relative to its asset base.
The Debt-to-capital ratio has also decreased from 0.39 in 2019 to 0.29 in 2023, demonstrating that the company has reduced its reliance on debt financing in relation to its total capital structure. This is a positive sign for investors and creditors as it indicates a more balanced mix of debt and equity.
The Debt-to-equity ratio has shown a significant improvement, dropping from 0.64 in 2019 to 0.41 in 2023. This implies that Teleflex is relying less on debt funding and more on equity, which enhances its financial stability and ability to weather economic downturns.
The Financial leverage ratio has decreased from 2.12 in 2019 to 1.70 in 2023, showing that the company has reduced its financial leverage and is less exposed to financial risks. A lower financial leverage ratio indicates a healthier balance sheet and improved financial flexibility.
Overall, the downward trend in Teleflex's solvency ratios over the years reflects a more robust financial position and improved risk management, which bodes well for the company's long-term financial health and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 6.09 | 9.22 | 10.83 | 6.37 | 5.23 |
Teleflex Incorporated has shown a generally improving trend in its interest coverage ratio over the last five years. The interest coverage ratio, which indicates the company's ability to meet its interest payments from its operating income, increased from 5.65 in 2019 to 7.78 in 2023. This suggests that the company's earnings are sufficient to cover its interest expenses with a comfortable margin.
The steady improvement in the interest coverage ratio from 2019 to 2023 indicates that Teleflex's financial health in terms of debt servicing has been strengthening over the years. A higher interest coverage ratio signifies a lower risk of default on debt obligations and reflects positively on the company's ability to generate earnings to support its debt obligations.
Overall, the upward trend in Teleflex's interest coverage ratio is a positive indicator of the company's financial stability and ability to manage its debt effectively.