United Therapeutics Corporation (UTHR)

The solvency ratios of United Therapeutics Corp indicate the company's ability to meet its long-term debt obligations.

The debt-to-assets ratio has been decreasing steadily over the past five years, from 0.22 in 2019 to 0.10 in 2023. This trend suggests that the company has been reducing its reliance on debt to finance its assets, which is a positive sign for solvency.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a downward trend over the same period. The debt-to-capital ratio has decreased from 0.23 in 2019 to 0.10 in 2023, while the debt-to-equity ratio has decreased from 0.31 in 2019 to 0.12 in 2023. These reductions indicate that the company is becoming less leveraged and is relying more on equity to finance its operations.

The financial leverage ratio has also shown a downward trend, decreasing from 1.41 in 2019 to 1.20 in 2023. This ratio measures the proportion of a company's debt to its equity, and the decreasing trend signifies that the company's reliance on debt has been decreasing compared to its equity.

Overall, the decreasing trend in these solvency ratios indicates that United Therapeutics Corp has been improving its financial health and reducing its financial risk by reducing its reliance on debt to finance its operations. This trend suggests that the company is in a better position to meet its long-term debt obligations and is moving towards a more stable financial position.

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Coverage ratios

Based on the available data, we can see that United Therapeutics Corp did not report the interest coverage ratio for the financial years ending on December 31, 2023, 2022, 2020, and 2019. However, for the year ending on December 31, 2021, the company had an interest coverage ratio of 292.58.

The interest coverage ratio of 292.58 indicates that United Therapeutics Corp generated approximately 292.58 times more operating income than it needed to cover its interest expenses in 2021. This high ratio suggests that the company had a strong ability to meet its interest obligations, indicating financial stability and a low risk of default on its debt.

It is important to note that a higher interest coverage ratio is generally favorable as it demonstrates the company's strong financial health and ability to easily meet its interest payments from its operating earnings. However, the absence of data for multiple years makes it challenging to assess the trend and the consistency of United Therapeutics Corp's interest coverage over time.