Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Solvency Ratios (Summary)
Gilead Sciences Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency profile exhibits a general long-term trend toward deleveraging and improved financial stability, despite a period of heightened volatility and increased risk during 2024. While leverage ratios remained relatively stable for much of the period, there is a clear movement toward a stronger equity position by the end of the observed timeframe.
- Debt-to-Equity and Capital Ratios
- The debt-to-equity ratio demonstrates a fluctuating but ultimately downward trajectory, starting at 1.32 in March 2022 and concluding at 0.94 in March 2026. A notable peak occurred in March 2024, where the ratio rose to 1.44, suggesting a temporary increase in debt obligations or a reduction in equity. Debt to capital and debt to assets ratios remained more consistent, with debt to assets oscillating between 0.39 and 0.45. Both metrics peaked in early 2024 before declining to their lowest levels in the series by March 2026, indicating a systematic reduction in the proportion of assets financed through debt.
- Financial Leverage
- Financial leverage followed a pattern similar to the debt ratios, generally trending downward from 3.17 in March 2022 to 2.39 in March 2026. An intermittent spike to 3.21 was recorded in March 2024, coinciding with the peak in debt-to-equity. The subsequent steady decline indicates a reduction in the use of debt to acquire assets, thereby lowering the company's overall financial risk profile.
- Interest Coverage and Debt Servicing
- The interest coverage ratio experienced the most significant volatility. After maintaining a strong position between 6.73 and 9.03 from March 2022 through December 2023, the ratio collapsed in 2024, reaching a low of 1.18 in September 2024. This sharp decline suggests a period of severely constrained cash flows relative to interest expenses. However, a robust recovery followed in 2025, with the ratio ascending to 11.68 by March 2026, representing a substantial increase in the capacity to service debt compared to the baseline figures of 2022.
Overall, the data indicates that the period of financial stress observed in 2024 was temporary. The convergence of a decreasing debt-to-equity ratio (falling below 1.00) and a peak in interest coverage by March 2026 suggests a strengthened balance sheet and a significantly improved solvency position.
Debt Ratios
Coverage Ratios
Debt to Equity
Gilead Sciences Inc., debt to equity calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt, net | |||||||||||||||||||||||
| Long-term debt, net, excluding current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total Gilead stockholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Total Gilead stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a fluctuating but generally improving trend over the period from March 2022 to March 2026. The debt to equity ratio began at 1.32 and concluded at 0.94, marking a transition where stockholders' equity eventually surpassed total debt.
- Debt to Equity Ratio Trends
- A consistent decline in the debt to equity ratio is observed from March 2022 (1.32) through December 2023 (1.09). This period of improvement was interrupted in March 2024 by a sharp increase to a peak of 1.44. Following this peak, the ratio experienced volatility through 2024 and 2025 before achieving a significant downward trend, ultimately reaching a period-low of 0.94 by March 2026.
- Total Debt Analysis
- Total debt remained relatively stable between $24.9 billion and $26.2 billion for the majority of the analyzed timeframe. A temporary reduction occurred in mid-2024, with debt dropping to $23.2 billion in September 2024, followed by a spike to $26.7 billion in December 2024. A notable deleveraging event is evident by March 2026, where total debt decreased to $22.1 billion, the lowest level recorded in the series.
- Stockholders' Equity Dynamics
- Equity grew steadily from $19.9 billion in March 2022 to $22.8 billion in December 2023. A significant contraction occurred in March 2024, where equity fell to $17.5 billion, which served as the primary driver for the spike in the debt to equity ratio during that quarter. Subsequently, equity demonstrated a consistent recovery trend, rising steadily to reach $23.5 billion by March 2026.
- Solvency Synthesis
- The correlation between the contraction of equity in early 2024 and the subsequent peak in the debt to equity ratio indicates that solvency volatility during that period was driven more by equity fluctuations than by debt accumulation. The final transition of the ratio to 0.94 suggests a strengthened solvency position, characterized by a higher proportion of equity relative to total liabilities.
Debt to Capital
Gilead Sciences Inc., debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt, net | |||||||||||||||||||||||
| Long-term debt, net, excluding current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total Gilead stockholders’ equity | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The solvency profile reflects a general long-term reduction in financial leverage, with the debt-to-capital ratio declining from 0.57 in March 2022 to 0.49 by March 2026.
- Debt to Capital Ratio Trends
- A gradual decline was observed throughout 2022 and 2023, as the ratio moved from 0.57 to 0.52. This period was characterized by a slight reduction in total debt and relatively stable total capital. A period of volatility occurred in the first half of 2024, where the ratio peaked at 0.59 in March 2024. This spike was primarily driven by a contraction in total capital, which dropped to 41.6 billion by June 2024. Following this peak, a consistent downward trajectory was established, concluding at a multi-year low of 0.49 in March 2026.
- Total Debt Dynamics
- Total debt remained relatively stable between 24.9 billion and 26.2 billion for the majority of the analyzed period. A notable increase occurred in December 2024, with debt rising to 26.7 billion. However, this was followed by a significant reduction, ending the period at 22.2 billion in March 2026, representing the lowest debt level recorded in the provided timeframe.
- Total Capital Fluctuations
- Total capital exhibited stability around the 46 billion mark from March 2022 through December 2023. A contraction was noted in early 2024, reaching a low of 41.6 billion in June 2024. Capital levels recovered subsequently, fluctuating between 44 billion and 47.6 billion through 2025, and ending at 45.7 billion in March 2026.
Debt to Assets
Gilead Sciences Inc., debt to assets calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current portion of long-term debt, net | |||||||||||||||||||||||
| Long-term debt, net, excluding current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The solvency profile for the analyzed period exhibits relative stability with a noticeable shift in leverage dynamics starting in early 2024. The debt to assets ratio fluctuated within a narrow range of 0.40 to 0.42 between March 2022 and December 2023, indicating a consistent approach to asset financing and capital structure during this timeframe.
- Total Debt Trends
- Total debt remained largely stable near the 25 billion USD mark for the majority of the period. A temporary reduction was observed in mid-2024, reaching a low of 23.25 billion USD in September 2024. This was followed by a sharp increase to 26.71 billion USD in December 2024, suggesting a period of short-term borrowing or debt issuance. The period concludes with a significant deleveraging event, with debt falling to its lowest recorded level of 22.17 billion USD by March 2026.
- Total Asset Volatility
- Total assets showed a sustained plateau around 62 billion USD until early 2024, at which point a contraction occurred, with assets dropping to a period low of 53.58 billion USD in June 2024. A recovery phase ensued, peaking again at 59.00 billion USD in December 2024, before stabilizing in the 56 to 59 billion USD range through early 2026.
- Debt to Assets Ratio Analysis
- The ratio experienced a peak of 0.45 in March and December 2024. This increase in leverage was primarily driven by the contraction of the asset base rather than a proportional increase in debt during the first half of 2024. By March 2026, the ratio declined to 0.39, representing the most favorable solvency position within the observed window, resulting from the combined effect of reduced total debt and a stabilized asset base.
Financial Leverage
Gilead Sciences Inc., financial leverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Total Gilead stockholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Total Gilead stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial leverage of the entity exhibited a general downward trajectory over the analyzed period from March 31, 2022, to March 31, 2026, despite a period of significant volatility in early 2024. The ratio transitioned from 3.17 at the start of the period to a period-low of 2.39 by the end of the timeframe, indicating a systematic reduction in the reliance on debt relative to equity to finance assets.
- Leverage Ratio Volatility and Trends
- A steady decline in financial leverage was observed between March 2022 and December 2023, with the ratio moving from 3.17 to 2.72. This stability was interrupted in March 2024, where the ratio spiked to 3.21, marking the highest leverage level in the dataset. Following this peak, a consistent deleveraging trend emerged throughout 2025 and into early 2026, ultimately reaching 2.39 by March 31, 2026.
- Stockholders' Equity Dynamics
- Equity levels showed a gradual increase from 19,927 million US$ in March 2022 to 22,833 million US$ by December 2023. A sharp contraction occurred in March 2024, with equity dropping to 17,539 million US$, which directly correlated with the aforementioned spike in financial leverage. From April 2024 onward, equity entered a recovery phase, growing consistently to reach 23,515 million US$ by March 2026, which served as the primary driver for the improved solvency position.
- Asset Base Fluctuations
- Total assets remained relatively stable around the 62,000 to 63,000 million US$ range throughout 2022 and 2023. A notable contraction occurred in the first half of 2024, with assets dipping to 53,579 million US$ in June 2024. While assets recovered partially toward the end of 2024 and during 2025, the overall trend in asset size was less volatile than the movements in stockholders' equity, meaning changes in the leverage ratio were more heavily influenced by equity fluctuations than by changes in the asset base.
Interest Coverage
Gilead Sciences Inc., interest coverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income (loss) attributable to Gilead | |||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The solvency analysis reveals a period of significant volatility in operational earnings followed by a robust recovery in the capacity to service debt obligations. While interest expenses remained remarkably stable throughout the analyzed timeframe, the interest coverage ratio was primarily driven by fluctuations in Earnings Before Interest and Taxes (EBIT).
- EBIT Performance and Volatility
- Operational earnings exhibited substantial variance, characterized by a severe contraction in the first quarter of 2024, where EBIT reached a deficit of 4,232 million USD. Following this trough, a consistent recovery trend emerged, with earnings peaking at 3,897 million USD in September 2025 and maintaining strength through March 2026.
- Interest Expense Consistency
- Debt servicing costs remained nearly constant, fluctuating within a narrow band between 226 million USD and 260 million USD. This stability indicates that the company's interest obligations are not subject to significant volatility, ensuring that changes in solvency ratios are a direct reflection of operating performance rather than changes in the cost of debt.
- Interest Coverage Ratio Trends
- The interest coverage ratio maintained a strong position between 6.73 and 9.03 from March 2022 through December 2023. A marked deterioration occurred during 2024, with the ratio falling to a period low of 1.18 in September 2024, signaling a temporary reduction in the margin of safety for interest payments. However, a sharp reversal followed, with the ratio climbing steadily to reach a peak of 11.68 by March 2026, indicating a significantly strengthened solvency position.