Varex Imaging Corp (VREX)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.36 0.35 0.36 0.37 0.37 0.35 0.35 0.36 0.38 0.38 0.37 0.40 0.40 0.40 0.35 0.33 0.33 0.35 0.36 0.33
Debt-to-capital ratio 0.44 0.44 0.45 0.46 0.46 0.44 0.44 0.45 0.47 0.47 0.48 0.50 0.50 0.50 0.45 0.44 0.44 0.45 0.47 0.42
Debt-to-equity ratio 0.78 0.78 0.83 0.85 0.86 0.77 0.80 0.82 0.88 0.89 0.91 1.01 1.02 1.00 0.83 0.78 0.78 0.82 0.87 0.73
Financial leverage ratio 2.18 2.20 2.28 2.29 2.31 2.22 2.26 2.28 2.31 2.37 2.46 2.49 2.53 2.52 2.40 2.40 2.39 2.34 2.40 2.23

The solvency ratios of Varex Imaging Corp indicate its ability to meet its long-term financial obligations. The trends in the various solvency ratios are as follows:

1. Debt-to-assets ratio has remained relatively stable around 0.35 to 0.40 over the past few quarters, suggesting that Varex Imaging Corp finances its assets primarily through debt, ranging from 35% to 40% of its total assets.

2. Debt-to-capital ratio has also shown stability around 0.44 to 0.50 during the same period, indicating that debt forms around 44% to 50% of the company's capital structure.

3. Debt-to-equity ratio has exhibited volatility, ranging from 0.73 to 1.02, indicating fluctuations in the proportion of debt to equity in the company's overall financial structure.

4. Financial leverage ratio has displayed a similar trend to the debt-to-equity ratio, showing an increase from 2.18 to 2.53 before settling around 2.40. This indicates that the company relies significantly on debt to finance its operations.

Overall, the solvency ratios suggest that Varex Imaging Corp has been managing its debt levels to finance its operations, with a significant portion of its capital structure being debt-funded. Investors and stakeholders should monitor these ratios closely to assess the company's ability to meet its long-term financial obligations and manage its leverage effectively.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 1.85 2.05 2.39 2.20 2.24 2.11 2.08 2.10 1.86 1.67 0.62 -0.72 -1.11 -1.33 -0.45 1.34 1.74 2.00 1.52 1.67

Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on outstanding debt. A higher interest coverage ratio suggests that the company is more capable of meeting its interest payment obligations.

In the case of Varex Imaging Corp, the interest coverage ratio has fluctuated over the past few quarters. In the most recent quarter, the interest coverage ratio was 2.05, indicating that the company earned 2.05 times the amount needed to cover its interest expenses. This suggests a relatively healthy interest coverage position for the company during that period.

However, it is worth noting that the interest coverage ratio has not been consistent, as seen from the varying values in previous quarters. For instance, in the quarter ending June 30, 2021, the interest coverage ratio dropped to 0.62, indicating a potential struggle to cover interest expenses with operating income.

Overall, while the recent interest coverage ratio for Varex Imaging Corp appears to be relatively solid, investors and creditors should continue to monitor the company's ability to generate sufficient earnings to cover its interest obligations, especially in light of the past fluctuations in the ratio.