Axcelis Technologies Inc (ACLS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.33 | 1.48 | 1.52 | 1.40 | 1.30 |
Based on the provided financial data for Axcelis Technologies Inc, we can see that the company has consistently maintained a strong solvency position over the years, as indicated by its solvency ratios:
1. Debt-to-assets ratio: The debt-to-assets ratio for Axcelis Technologies Inc has been at 0.00 for the years 2020 to 2024. This signifies that the company has not utilized debt to finance its assets, indicating a low risk of financial distress related to debt obligations.
2. Debt-to-capital ratio: The debt-to-capital ratio, also at 0.00 for the same period, reaffirms the company's conservative approach to debt utilization in its capital structure, with no significant reliance on debt funding.
3. Debt-to-equity ratio: Similar to the previous ratios, the debt-to-equity ratio has been consistently at 0.00 for the years 2020 to 2024. This implies that the company's equity base exceeds its debt level, portraying a level of financial stability and low leverage through debt.
4. Financial leverage ratio: The financial leverage ratio, which measures the extent of a company's leverage through debt, has shown some variation over the years, ranging from 1.30 to 1.52. Despite these fluctuations, the ratios are relatively low, indicating a manageable level of debt in relation to the company's assets and equity.
In conclusion, the analysis of Axcelis Technologies Inc's solvency ratios reflects a robust financial position with minimal debt obligations and a prudent approach to financing its operations through equity. This stable solvency position is crucial for the company's long-term financial health and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 43.16 | 53.10 | 37.74 | 25.91 | 11.72 |
Interest coverage, a crucial financial ratio indicating a company's ability to meet its interest obligations, has exhibited an upward trend for Axcelis Technologies Inc over the past five years. The ratio stood at 11.72 on December 31, 2020, showing that the company generated operating income 11.72 times more than its interest expenses. By the end of 2024, this ratio had significantly improved to 43.16, indicating a stronger ability to cover interest payments.
The consistent increase in interest coverage from 2020 to 2024 suggests that Axcelis Technologies Inc's operating profits have been steadily outpacing its interest expenses, reflecting a healthier financial position and reduced financial risk. This improvement may be attributed to effective cost management, increased revenue generation, or a combination of both factors.
A high interest coverage ratio such as the one exhibited by Axcelis Technologies Inc implies that the company is financially robust and well-equipped to handle its debt obligations. Investors and creditors often view a rising interest coverage ratio positively, as it indicates a higher margin of safety for debt servicing. Nonetheless, continued monitoring of this ratio is advisable to ensure the sustainability of Axcelis Technologies Inc's financial health.