United Therapeutics Corporation (UTHR)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.14 | 1.17 | 1.18 | 1.22 | 1.20 | 1.23 | 1.23 | 1.24 | 1.26 | 1.27 | 1.28 | 1.28 | 1.31 | 1.32 | 1.33 | 1.35 | 1.36 | 1.34 | 1.36 | 1.37 |
The solvency ratios of United Therapeutics Corporation indicate a consistently strong financial position over the reporting periods. The Debt-to-Assets ratio has consistently been at 0.00, suggesting that the company has no debt in relation to its total assets, indicating a low-risk profile.
Similarly, the Debt-to-Capital and Debt-to-Equity ratios have remained at 0.00 throughout the periods, demonstrating that the company has been able to fund its operations without relying on debt financing. This implies a healthy balance between debt and equity in the capital structure.
Furthermore, the Financial Leverage ratio has shown a declining trend from 1.37 in March 2020 to 1.14 in December 2024. This decline indicates that the company has been gradually reducing its reliance on debt to finance its operations, which is a positive sign for investors and creditors.
Overall, the solvency ratios reflect United Therapeutics Corporation's robust financial health, with minimal debt levels and effective management of capital structure, positioning the company well to weather economic downturns and pursue growth opportunities.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 35.78 | 28.76 | 25.12 | 24.26 | 22.49 | 21.49 | 23.84 | 24.43 | 31.56 | 39.38 | 42.74 | 49.73 | 35.05 | 33.47 | 33.88 | 28.13 | 30.13 | 23.25 | 17.45 | 17.58 |
Interest coverage is a financial ratio that reflects a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense.
Analyzing the interest coverage for United Therapeutics Corporation based on the provided data reveals a generally favorable trend over the past few years. The interest coverage ratio has shown consistent improvement from 17.58 in March 2020 to a high of 49.73 in March 2022, indicating that the company's earnings were significantly higher than its interest expenses during this period.
However, after reaching its peak in March 2022, the interest coverage ratio started to decline gradually, falling to 35.78 by December 2024. While the ratio remained above 20 during this period, the decreasing trend suggests a potential decrease in the company's ability to cover its interest payments with operating earnings.
Overall, the interest coverage ratio for United Therapeutics Corporation demonstrates a strong capacity to meet its interest obligations comfortably, although a slight downward trend in recent periods warrants monitoring to ensure the company's financial health remains robust.