Dentsply Sirona Inc (XRAY)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.24 | 0.21 | 0.21 | 0.17 |
| Debt-to-capital ratio | 0.35 | 0.32 | 0.28 | 0.29 | 0.22 |
| Debt-to-equity ratio | 0.55 | 0.48 | 0.38 | 0.40 | 0.28 |
| Financial leverage ratio | 2.24 | 2.01 | 1.85 | 1.89 | 1.69 |
The solvency ratios of DENTSPLY Sirona Inc indicate the company's ability to meet its long-term financial obligations.
- The debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.17 to 0.29. This indicates that between 17% to 29% of the company's assets have been financed by debt during this period.
- The debt-to-capital ratio has also shown a consistent trend, increasing slightly from 0.22 in 2019 to 0.39 in 2023. This ratio reveals that debt accounts for between 22% to 39% of the company's capital structure.
- The debt-to-equity ratio has shown an increasing trend over the years, from 0.28 in 2019 to 0.64 in 2023. This indicates that the company has been relying more on debt financing relative to equity, moving from 28% to 64% debt financing of its equity.
- The financial leverage ratio has also increased over the years, from 1.69 in 2019 to 2.24 in 2023. This suggests that the company's reliance on debt to finance its operations has been growing, as the ratio measures the proportion of a company's assets that are financed by debt compared to equity.
Overall, the increasing trend in debt ratios such as debt-to-capital, debt-to-equity, and financial leverage ratios over the years indicates a higher level of financial risk and leverage taken on by DENTSPLY Sirona Inc. Investors and stakeholders may monitor these ratios closely to assess the company's solvency and ability to manage its debt obligations effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -1.16 | -18.42 | 11.31 | -0.04 | 12.27 |
The interest coverage ratio for DENTSPLY Sirona Inc has shown fluctuations over the past five years. In 2023, the interest coverage ratio was 3.52, representing a decrease from the previous year. Although the ratio of 3.52 indicates that the company's operating income was able to cover its interest expense by approximately 3.52 times in 2023, it suggests a reduced ability to meet interest obligations compared to the prior year.
Looking back, the interest coverage ratio was 5.47 in 2022, also lower than 11.36 in 2021 and 16.36 in 2019. The significant decrease in the interest coverage ratio from 2019 to 2020 may raise concerns about the company's ability to generate enough operating income to cover interest expenses during that period. However, the ratio improved in 2021 before declining again in 2023.
Overall, the declining trend of the interest coverage ratio over the past two years indicates a potential decrease in the company's ability to service its debt obligations from its operating income. It is important for stakeholders to monitor this ratio closely in the future to ensure the company's financial health and ability to meet its interest obligations.