US Physicalrapy Inc (USPH)

US Physicalrapy Inc's solvency ratios show a mixed trend over the years.

The Debt-to-assets ratio has increased from 0.03 in 2020 to 0.12 in 2024, indicating that the proportion of debt relative to the company's total assets has increased. While the ratio is still relatively low, the upward trend may raise concerns about the company's ability to cover its debt obligations using its assets.

Similarly, the Debt-to-capital ratio has risen steadily from 0.06 in 2020 to 0.23 in 2024, suggesting that a higher percentage of the company's capital is financed through debt. This could potentially increase the company's financial risk as it becomes more leveraged.

The Debt-to-equity ratio also demonstrates an increasing trend, going up from 0.06 in 2020 to 0.29 in 2024. This indicates that the company's reliance on debt financing relative to equity has grown over the years, which could make the company more vulnerable to fluctuations in interest rates or economic conditions.

The Financial leverage ratio, which measures the extent of the company's assets that are financed by debt, has fluctuated but generally increased from 2.15 in 2020 to 2.39 in 2024. This suggests that the company is utilizing more debt to finance its operations, potentially amplifying both returns and risks for shareholders.

Overall, the increasing trend in these solvency ratios indicates that US Physicalrapy Inc's financial risk has been on the rise in recent years, and stakeholders should monitor the company's ability to manage its debt levels effectively to ensure long-term viability.

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Coverage ratios

Based on the data provided, the interest coverage ratio of US Physicalrapy Inc has shown a strong upward trend over the past five years. In December 2020, the interest coverage ratio was 32.08, indicating that the company generated 32 times more earnings before interest and taxes (EBIT) than it needed to cover its interest expenses.

By December 2021, the interest coverage ratio had improved significantly to 75.00, suggesting a substantial increase in EBIT relative to interest obligations. This improvement signals the company's enhanced ability to meet its interest payments comfortably.

The trend continued upward in the following years, with the interest coverage ratios reaching 186.23 by December 2022, 123.95 by December 2023, and 149.79 by December 2024. These high ratios indicate that US Physicalrapy Inc has maintained a strong ability to cover its interest expenses with its operating income.

Overall, the consistent increase in the interest coverage ratio reflects the company's improving financial health and its capacity to easily meet its interest obligations. It also indicates a reduced risk of default due to its ability to generate sufficient income to service its debt.