United Therapeutics Corporation (UTHR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.14 | 1.20 | 1.26 | 1.31 | 1.36 |
United Therapeutics Corporation has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which are reported as 0.00 for the years 2020 to 2024. This demonstrates that the company's level of debt relative to its total assets, capital, and equity is negligible or non-existent, reducing its financial risk and indicating a healthy financial structure.
Additionally, the financial leverage ratio has been decreasing over the years, from 1.36 in 2020 to 1.14 in 2024. This trend suggests that the company is successfully reducing its reliance on debt financing in relation to its equity, which is a positive sign of financial health and stability.
Overall, United Therapeutics Corporation's solvency ratios reflect a prudent financial management approach, with a minimal debt burden and improving leverage position, indicating the company's ability to meet its financial obligations and sustain its operations effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 36.87 | 22.49 | 30.52 | 36.93 | 25.38 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations.
For United Therapeutics Corporation, the interest coverage ratio has shown fluctuations over the years:
- As of December 31, 2020, the interest coverage ratio was 25.38, indicating that the company generated 25.38 times the amount needed to cover its interest expenses.
- By December 31, 2021, the ratio had improved to 36.93, signifying a stronger coverage of interest payments.
- However, in the following year, on December 31, 2022, the ratio decreased to 30.52, albeit still at a relatively healthy level.
- A slight decline was observed by December 31, 2023, with an interest coverage ratio of 22.49, which may raise some concerns about the company's ability to cover its interest obligations.
- The ratio improved once again by December 31, 2024, reaching 36.87, indicating a recovery in the company's ability to meet its interest expenses.
Overall, United Therapeutics Corporation's interest coverage has displayed some variability, but generally, the company has maintained a solid ability to cover its interest payments, with a few fluctuations warranting further monitoring to ensure continued financial health.