TG Therapeutics Inc (TGTX)

The solvency ratios of TG Therapeutics Inc over the years indicate a mixed financial position. The Debt-to-assets ratio has shown an increasing trend from 0.01 in 2020 to 0.42 in 2024, implying that a higher proportion of the company's assets are financed by debt. The Debt-to-capital ratio followed a similar trend, rising from 0.01 in 2020 to 0.52 in 2024, indicating an increasing reliance on debt to fund the company's operations.

The Debt-to-equity ratio fluctuated over the years, reaching a peak of 1.21 in 2022 before decreasing to 1.10 in 2024. This implies that the company's debt levels relative to shareholders' equity have been volatile. The Financial leverage ratio also exhibited fluctuations, ranging from 1.20 in 2020 to 3.30 in 2022, then decreasing to 2.60 in 2024. This indicates that the company's reliance on debt to finance its operations increased significantly in 2022 before declining in the following years.

Overall, the increasing trend in the Debt-to-assets and Debt-to-capital ratios, along with the fluctuations in the Debt-to-equity and Financial leverage ratios, suggest that TG Therapeutics Inc may have varying levels of solvency and financial risk over the years. Investors and stakeholders should closely monitor these ratios to assess the company's ability to meet its debt obligations and manage its financial leverage effectively.

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Coverage ratios

Interest coverage is a financial ratio that measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a greater ability to cover interest expenses.

Analyzing the interest coverage ratio of TG Therapeutics Inc over the past five years reveals a concerning trend. In December 2020 and December 2021, the company's interest coverage ratios were significantly negative at -43.23 and -61.15, respectively. This indicates that the company's earnings were insufficient to cover its interest expenses during those years.

However, there seems to have been some improvement in the company's financial performance in the following years. By December 2023, TG Therapeutics Inc achieved an interest coverage ratio of 2.04, indicating that its earnings were just enough to cover its interest payments. This improvement continued into December 2024, where the interest coverage ratio further increased to 21.02, suggesting that the company's ability to meet its interest obligations had substantially improved.

Overall, while TG Therapeutics Inc experienced significant financial challenges in the past, there have been signs of recovery and improvement in its ability to cover interest expenses in more recent years. Nonetheless, the company should continue to closely monitor and maintain a healthy interest coverage ratio to ensure its long-term financial stability.