Abiomed Inc. (NASDAQ:ABMD)

The financial ratios exhibit several notable trends over the analyzed periods. The debt-related ratios, including debt to equity, debt to capital, and debt to assets, remain consistently very low throughout the periods for which data is available. Specifically, these ratios, whether including operating lease liabilities or not, fluctuate minimally around values close to zero, indicating an extremely low reliance on debt financing. This pattern suggests a conservative capital structure with negligible leverage.

Financial leverage shows a gradual but consistent decrease from 1.22 in 2017 to 1.11 in 2022. This decline implies a reduction in reliance on borrowed funds relative to shareholders' equity, further reinforcing the low leverage profile of the entity.

Interest coverage, available for the years 2017 and 2018, is extremely high at 259.03 and 532.25 respectively, indicating a very strong ability to cover interest expenses with operating earnings during these years. However, data for subsequent years is missing, limiting the ability to assess continued trends in interest coverage comprehensively.

Fixed charge coverage exhibits a downward trajectory beginning at 259.03 in 2017, remaining similarly high in 2018 at 532.25, but declining notably in later years to 71.21 in 2020, 70.89 in 2021, and 59.85 in 2022. Although still indicating ample coverage of fixed charges by earnings, the decline suggests a relative reduction in operating income sufficiency over time or potentially higher fixed charges incurred.

In summary, the financial data reflects a consistently low dependence on debt financing, evidenced by minimal debt ratios and declining financial leverage. The company maintains a strong capacity to cover fixed financial obligations, despite some weakening in recent years as shown by the fixed charge coverage ratio. The absence of complete data for certain ratios in some years limits a fully continuous analysis but the available information points towards financial prudence with conservative leverage and robust coverage of financial charges throughout the period.

The financial data presents a limited but insightful snapshot concerning the equity and debt structure over the period from 2017 to 2022.

Stockholders' Equity

The stockholders’ equity demonstrates a clear and consistent growth trajectory across the given timeline. Beginning at approximately $452 million in 2017, equity increased markedly each year, reaching about $1.5 billion by 2022. This progression indicates sustained accumulation of net assets, reflecting positive retained earnings and possibly other comprehensive income components over the period.

Total Debt

Data on total debt is only reported for the year ending March 31, 2017, at $16.3 million. There is an absence of subsequent debt data for the following years, which limits longitudinal analysis in this regard. However, the low debt figure relative to equity in 2017 suggests a relatively conservative leverage position at that point in time.

Debt to Equity Ratio

The debt to equity ratio is available solely for 2017, recorded at 0.04, reinforcing the observation of minimal leverage in the capital structure during that year. The absence of ratio data for subsequent years precludes trend analysis, yet the significant increase in equity implies that any stable or modest debt levels would result in a continuing low leverage ratio.

In summary, the data reflects strong and consistent growth in shareholder equity over the analyzed period, suggesting robust financial health and asset accumulation. The initial low leverage indicated by the 2017 figures points to a conservative use of debt financing, although the lack of further debt data inhibits a comprehensive assessment of capital structure dynamics through 2022.

Total Debt (Including Operating Lease Liability)

The total debt decreased significantly from $16,338 thousand in 2017 to $12,220 thousand in 2020, followed by a further decline to $6,116 thousand in 2021. In 2022, there was a slight increase to $9,507 thousand. Overall, the trend indicates a reduction in debt levels over the period with a minor uptick in the most recent year.

Stockholders’ Equity

Stockholders’ equity exhibited a consistent and strong upward trend across the entire period. Starting at $452,071 thousand in 2017, it increased notably each year to reach $1,503,326 thousand by 2022. This growth suggests a strengthening in the company’s financial foundation and retained earnings or capital infusion over the years.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt to equity ratio remained very low, indicating minimal reliance on debt financing relative to equity. It decreased from 0.04 in 2017 to 0.01 by 2020, reached almost zero in 2021, and slightly increased to 0.01 in 2022. This low ratio reflects a conservative capital structure with limited leverage throughout the observed years.

The data reveals the following key trends and observations regarding the financial position over the periods analyzed:

Total Capital

Total capital has demonstrated consistent growth across the periods from March 31, 2017, through March 31, 2022. It increased from approximately $468.4 million to $1.5 billion, indicating a strong upward trajectory in the company's capital base over the five-year span. This suggests ongoing investment or retained earnings contributing to expanded resources.

Total Debt

Total debt data is available only for March 31, 2017, at $16.3 million, with no subsequent data reported for later periods. Hence, it is not possible to identify a trend or change in leverage directly from the provided figures beyond the initial period.

Debt to Capital Ratio

The debt to capital ratio is provided only for March 31, 2017, at a low value of 0.03. This low ratio aligns with the relatively small amount of reported debt compared to total capital at that time, indicating a low level of financial leverage. The absence of data for subsequent years restricts any analysis of changes in capital structure or leverage over time.

Overall, the available financial data highlights a significant growth in total capital from 2017 to 2022, reflecting strengthening financial capacity. However, due to the limited debt information, no conclusions can be drawn regarding changes in debt levels or leverage during this timeframe.

Total Debt (including operating lease liability)

The total debt experienced a notable decline from US$16,338 thousand in the year ending March 31, 2017, to US$6,116 thousand by March 31, 2021. However, there was an increase to US$9,507 thousand in the following year ending March 31, 2022. Data for the years ending March 31, 2018 and 2019 is missing, limiting the observation of the debt trend during those years.

Total Capital (including operating lease liability)

Total capital showed a consistent and significant upward trend over the assessed period. Beginning at US$468,409 thousand in March 2017, it grew steadily each year, reaching US$1,512,833 thousand by the end of March 2022. This represents a more than threefold increase, indicating strong capital growth throughout the period.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio remained very low throughout the available periods, starting at 0.03 in March 2017, decreasing to 0.01 by March 2020, and stabilizing at either 0 or 0.01 in the subsequent years. This suggests the company maintained a conservative leverage profile during this timeframe, relying minimally on debt relative to its total capital.

The analysis of the available financial data reveals several notable trends concerning the company's asset base and debt structure. Over the period from March 31, 2017, to March 31, 2022, total assets have exhibited consistent growth year-over-year, increasing from $550,414 thousand in 2017 to $1,673,393 thousand in 2022. This represents more than a threefold increase over the five-year period, indicating substantial expansion of the company's resources and asset holdings.

Regarding total debt, data is only available for the year ending March 31, 2017, where total debt stood at $16,338 thousand. Correspondingly, the debt to assets ratio at that date was recorded at a low 0.03, suggesting that debt financing comprised a small portion of the company’s asset base at that time. There is no subsequent debt or debt-to-asset ratio data for the later periods, which limits the ability to assess debt trends or leverage changes over the full span.

In summary, the company has demonstrated a strong upward trajectory in total assets from 2017 to 2022. However, with only initial debt data available, conclusions cannot be drawn regarding changes in financial leverage or debt management practices during this period. The initial low debt to asset ratio indicates a conservative capital structure as of 2017, but further data would be necessary to evaluate ongoing financial risk levels or shifts in capital strategy.

Total Debt (Including Operating Lease Liability)

The total debt experienced a significant decline from US$16,338 thousand as of March 31, 2017, to US$12,220 thousand by March 31, 2020. This downward trend continued to March 31, 2021, reaching a low of US$6,116 thousand. However, there was an increase noted by March 31, 2022, where total debt rose to US$9,507 thousand. Overall, the company demonstrated a general reduction in total debt over the analyzed period, with a slight uptick in the most recent year.

Total Assets

Total assets showed a consistent upward trend throughout the entire period. Starting at US$550,414 thousand in 2017, they increased substantially each year, reaching US$786,375 thousand in 2018 and US$1,054,346 thousand in 2019. The growth continued in subsequent years, with assets amounting to US$1,216,462 thousand in 2020, US$1,494,359 thousand in 2021, and US$1,673,393 thousand by March 31, 2022. This reflects strong asset base expansion, more than tripling over the five-year span.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio was relatively low throughout the reported years, starting at 0.03 in 2017. There is a missing data gap for 2018 and 2019; however, the ratio decreased to 0.01 in 2020, dropped to 0 in 2021, and slightly increased again to 0.01 in 2022. The consistently low ratio indicates a conservative use of debt relative to the asset base, suggesting a strong equity position and potentially lower financial risk.

Total assets

The total assets exhibited a consistent upward trend over the analyzed periods, increasing from approximately 550 million USD in 2017 to over 1.67 billion USD by 2022. This growth reflects a significant expansion in the company's asset base, with an accelerated increase particularly noticeable between 2017 and 2019, followed by continued steady growth through 2022.

Stockholders’ equity

Stockholders’ equity also showed a robust and consistent increase during the same timeframe, rising from around 452 million USD in 2017 to over 1.5 billion USD in 2022. The pattern of equity growth closely mirrors that of total assets, indicating that the company has been able to retain earnings or raise capital proportionally to support asset expansion. This trend suggests strong financial health and increasing shareholder value.

Financial leverage

The financial leverage ratio demonstrated a gradual decline over the years, moving from 1.22 in 2017 to 1.11 in 2022. This decreasing leverage ratio indicates a reduction in reliance on debt relative to equity. The consistent decline suggests improved capitalization and lower financial risk, as the company's equity has grown slightly faster than its total assets or liabilities have increased.

Earnings Before Interest and Tax (EBIT)

The EBIT exhibited a general upward trend from 2017 to 2021, increasing significantly from approximately 91.7 million USD in 2017 to 288.2 million USD in 2021. This marks a substantial growth in operating profitability over the five-year period. However, in 2022 there was a noticeable decline, with EBIT decreasing to 190.6 million USD. This drop represents a reversal of the prior growth trend and may warrant further investigation to understand the contributing factors.

Interest Expense

Interest expense remained relatively low during the period for which data is available, with values of 354 thousand USD in 2017 and a slight decrease to 302 thousand USD in 2018. No data is provided for years following 2018, leaving uncertainty regarding interest costs in later years.

Interest Coverage Ratio

The interest coverage ratio was extremely high in 2017 and 2018 at 259.03 and 532.25 respectively, indicating a strong ability to cover interest expenses with earnings before interest and tax. Data is unavailable for the subsequent years, limiting the analysis of how this ratio evolved in relation to EBIT fluctuations and missing interest expense data.

Earnings before fixed charges and tax

The earnings before fixed charges and tax exhibit a notable upward trend from 2017 to 2021. Starting at 91,697 thousand US dollars in 2017, the amount nearly doubled by 2018 to 160,739 thousand US dollars. This upward momentum continued more sharply in 2019 reaching 263,360 thousand US dollars, before slightly decreasing in 2020 to 260,483 thousand US dollars. In 2021, earnings peaked at 292,344 thousand US dollars. However, in 2022, there was a significant decline to 193,798 thousand US dollars, representing a considerable reduction after several years of growth.

Fixed charges

Fixed charges remained relatively low in 2017 and 2018 at 354 and 302 thousand US dollars respectively, but there is missing data for 2019. In 2020, fixed charges increased substantially to 3,658 thousand US dollars and continued to rise marginally to 4,124 thousand US dollars in 2021, before decreasing to 3,238 thousand US dollars in 2022. This pattern suggests increasing fixed financial obligations beginning in 2020, followed by a slight reduction in the most recent year.

Fixed charge coverage ratio

The fixed charge coverage ratio shows a declining trend over the period analyzed. Exceptionally high coverage ratios were recorded in 2017 and 2018, at 259.03 and 532.25 respectively, indicating a very strong ability to cover fixed charges during these years. The absence of data for 2019 prevents analysis for that year. Starting in 2020, the ratio declined markedly to 71.21 and stayed nearly steady in 2021 at 70.89, before falling further to 59.85 in 2022. This decline reflects a reduced cushion in covering fixed charges despite the still positive coverage, consistent with the observed increase in fixed charges and the drop in earnings in 2022.