Dentsply Sirona Inc (XRAY)
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 | 2.96 | 2.24 | 2.00 | 1.83 | 1.88 |
Dentsply Sirona Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the years 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 during this period, demonstrating that the company is not reliant on debt to finance its operations or invest in its assets.
However, the Financial leverage ratio has shown an increasing trend from 1.88 in 2020 to 2.96 in 2024. This ratio measures the proportion of a company's assets that are financed by debt. The upward trend in the Financial leverage ratio indicates that the company has been gradually increasing its reliance on debt to fund its operations and investments.
Overall, while Dentsply Sirona Inc has maintained a strong solvency position with minimal debt levels in relation to its assets, capital, and equity, the increasing Financial leverage ratio suggests a shift towards utilizing more debt in its capital structure over the years. This changing trend in leverage should be monitored closely to assess the company's ability to manage its debt obligations effectively and maintain its financial stability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -12.57 | -1.37 | 10.56 | 11.38 | 0.04 |
Based on the provided data, Dentsply Sirona Inc's interest coverage ratio has shown significant fluctuations over the past five years. In December 31, 2020, the interest coverage ratio was extremely low at 0.04, indicating that the company's operating income was only able to cover 4% of its interest expenses.
Subsequently, there was a substantial improvement in the interest coverage ratio in the following years. By December 31, 2021, the ratio had increased significantly to 11.38, suggesting that the company's operating income was more than sufficient to cover its interest expenses, reflecting a healthier financial position.
The trend continued positively in December 31, 2022, with the interest coverage ratio remaining high at 10.56. This indicates that Dentsply Sirona Inc continued to have a strong ability to meet its interest obligations through its operating income.
However, there was a sharp decline in the interest coverage ratio by December 31, 2023, as it dropped to -1.37. A negative interest coverage ratio implies that the company's operating income was insufficient to cover its interest expenses during that period, which could raise concerns about its financial stability and ability to meet debt obligations.
The situation worsened further by December 31, 2024, with the interest coverage ratio plummeting to -12.57, indicating a severe financial strain and significant challenges in meeting interest payments with available operating income.
Overall, the fluctuations in Dentsply Sirona Inc's interest coverage ratio over the years highlight the importance of consistent profitability and cash flow generation to support debt obligations. Management should closely monitor and address any downward trends in the interest coverage ratio to ensure the company's long-term financial health and stability.