Dentsply Sirona Inc (XRAY)
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 | 2.96 | 2.66 | 2.25 | 2.19 | 2.24 | 2.14 | 2.07 | 2.11 | 2.00 | 2.08 | 1.85 | 1.87 | 1.83 | 1.81 | 1.85 | 1.85 | 1.88 | 1.87 | 1.85 | 1.72 |
Dentsply Sirona Inc's solvency ratios indicate a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity over the analyzed periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remain at 0.00, suggesting that the company is operating with minimal debt relative to its total assets and financing sources.
However, the Financial leverage ratio has exhibited some fluctuations over time, increasing from 1.72 in March 2020 to 2.96 in December 2024. This ratio indicates that the company's reliance on debt financing has been gradually rising, which could potentially pose risks in terms of interest payments and financial flexibility in the future.
Overall, while the absence of significant debt in relation to assets, capital, and equity reflects a stable financial stance for Dentsply Sirona Inc, the upward trend in the Financial leverage ratio warrants careful monitoring to ensure sustainable solvency in the long term.
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 | -12.26 | -5.59 | -2.47 | -2.17 | -1.01 | 0.31 | -13.29 | -13.88 | -16.22 | -15.53 | 10.37 | 10.77 | 11.35 | 10.31 | 8.93 | 4.73 | -0.21 | -0.30 | 1.07 | 9.12 |
Interest coverage measures a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates the company is more capable of meeting its interest payments.
Analyzing Dentsply Sirona Inc's interest coverage ratio over the past few years, we observe some fluctuations. The ratio was 9.12 as of March 31, 2020, indicating a relatively healthy ability to cover interest expenses. However, it dropped significantly to 1.07 by June 30, 2020, and turned negative in subsequent quarters, signifying potential challenges in meeting interest obligations with operating earnings alone.
The company's interest coverage ratio improved over the next few quarters, reaching double digits by the end of 2021, showing a stronger ability to cover interest costs. Despite some fluctuations, the ratio remained mostly positive through mid-2023. However, starting in the third quarter of 2023, the interest coverage ratio turned negative and continued on a downward trend through December 31, 2024. This indicates a concerning situation where operating earnings may not be enough to cover interest payments.
Overall, Dentsply Sirona Inc's interest coverage ratio has shown volatility and a deteriorating trend in recent quarters, suggesting potential challenges in meeting interest obligations solely through operating earnings. Investors and creditors may view this trend as a risk factor in assessing the company's financial health and debt repayment capacity.