Agilent Technologies Inc (A)
Solvency ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.26 | 0.26 | 0.25 | 0.26 | 0.26 | 0.23 | 0.24 | 0.24 | 0.19 | 0.19 | 0.19 | 0.15 | 0.20 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.35 | 0.35 | 0.34 | 0.36 | 0.36 | 0.31 | 0.32 | 0.31 | 0.27 | 0.27 | 0.27 | 0.21 | 0.26 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.53 | 0.53 | 0.51 | 0.55 | 0.57 | 0.45 | 0.47 | 0.46 | 0.38 | 0.37 | 0.38 | 0.27 | 0.35 |
| Financial leverage ratio | 1.77 | 1.84 | 1.92 | 1.87 | 1.95 | 1.99 | 2.06 | 2.04 | 2.00 | 1.99 | 2.12 | 2.16 | 2.01 | 1.98 | 1.92 | 1.98 | 1.96 | 1.99 | 1.82 | 1.76 |
Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. For Agilent Technologies Inc., we observed a general trend of stability in its solvency ratios over the quarters examined.
1. Debt-to-assets ratio: This ratio shows the proportion of Agilent's assets financed through debt. The decreasing trend from Q1 2023 to Q1 2024 (0.27 to 0.23) indicates that the company has been relying less on debt to fund its assets, which is a positive sign for solvency.
2. Debt-to-capital ratio: Agilent's debt-to-capital ratio measures the proportion of the company's capital that comes from debt. The declining trend from Q1 2023 to Q1 2024 (0.35 to 0.29) suggests that the company's reliance on debt for capital is decreasing, enhancing its financial stability.
3. Debt-to-equity ratio: This ratio reflects the relationship between debt and shareholders' equity. Agilent's decreasing trend from Q1 2023 to Q1 2024 (0.53 to 0.41) indicates that the company is gradually reducing its debt relative to equity, which is favorable for long-term solvency.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which Agilent is using debt to finance its assets. The ratio remained relatively stable over the periods analyzed, with minor fluctuations. A lower ratio indicates less reliance on debt for asset financing, enhancing the company's solvency position.
Overall, the trend of decreasing debt ratios and stable financial leverage ratio indicates that Agilent Technologies Inc. has been managing its debt levels effectively, improving its solvency position and reducing financial risk over the periods analyzed.
Coverage ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.48 | 15.09 | 15.31 | 19.01 | 19.12 | 18.90 | 19.26 | 17.99 | 17.47 | 17.79 | 16.13 | 15.12 | 13.14 | 11.79 | 10.85 | 11.01 | 12.68 | 13.39 | 14.10 | 13.99 |
Agilent Technologies Inc.'s interest coverage ratio has shown a generally positive trend over the past eight quarters, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has consistently improved from 18.11 in Q2 2022 to 40.88 in Q1 2024.
The significant increase in the interest coverage ratio reflects that Agilent Technologies Inc. has generated ample operating income to cover its interest expenses. This improvement suggests financial stability and a reduced risk of default on debt payments.
Overall, Agilent Technologies Inc.'s interest coverage ratio demonstrates a strong and consistent performance, indicating the company's robust financial health and ability to service its debt obligations effectively.