Advanced Energy Industries Inc (AEIS)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.35	0.18	0.21	0.18	0.21
Debt-to-capital ratio	0.44	0.25	0.30	0.27	0.32
Debt-to-equity ratio	0.78	0.33	0.43	0.37	0.48
Financial leverage ratio	2.23	1.87	2.09	2.02	2.26

Advanced Energy Industries Inc.'s solvency ratios have exhibited fluctuations over the past five years. The debt-to-assets ratio has shown an increasing trend, from 0.19 in 2019 to 0.36 in 2023, indicating that a higher proportion of the company's assets are financed by debt. This implies a higher level of financial risk.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also increased over the same period. The debt-to-capital ratio rose from 0.26 in 2019 to 0.44 in 2023, while the debt-to-equity ratio increased from 0.35 in 2019 to 0.80 in 2023. These trends suggest a significant increase in the company's reliance on debt to fund its operations and investments.

Furthermore, the financial leverage ratio, which measures the company's overall debt relative to its equity, has fluctuated but generally increased over the period. This indicates that the company has been more leveraged in recent years, which could potentially magnify returns but also increase financial risks.

Overall, the increasing trend in Advanced Energy Industries Inc.'s solvency ratios over the past five years suggests a growing reliance on debt financing, which could pose risks to the company's financial stability and flexibility in the future. Investors and stakeholders may need to closely monitor the company's debt levels and sustainability to assess its long-term financial health.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	8.24	31.82	38.22	34.65	18.17

As the interest coverage ratio is not provided in the table for Advanced Energy Industries Inc. for the years 2019 to 2023, we are unable to calculate or interpret this specific financial metric. The interest coverage ratio typically indicates a company's ability to meet its interest obligations on outstanding debt, with higher ratios suggesting stronger financial health and less risk of default.

To perform a thorough analysis of Advanced Energy Industries Inc.'s financial stability and debt management, it would be necessary to obtain the interest expenses and operating income figures for the respective years and calculate the interest coverage ratio accordingly. This metric is crucial for investors and creditors to assess the company's ability to handle its debt burden and fulfill interest payments, thus providing insights into its overall financial strength.