Advanced Energy Industries Inc (AEIS)
Solvency ratios
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.88 | 1.88 | 2.18 | 2.21 | 2.23 | 2.27 | 1.73 | 1.83 | 1.87 | 2.00 | 2.03 | 2.03 | 2.09 | 2.18 | 2.03 | 2.01 | 2.02 | 2.14 | 2.22 | 2.22 |
Advanced Energy Industries Inc has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00% from March 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt significantly to finance its assets and operations.
The financial leverage ratio, which measures the extent of a company's financial leverage, has shown some fluctuations over the period. It decreased from 2.22 in March 31, 2020, to 1.88 in December 31, 2024. This suggests that Advanced Energy Industries Inc has been effectively managing its capital structure by reducing its reliance on debt financing.
Overall, the consistent low levels of debt ratios coupled with the decreasing trend in the financial leverage ratio demonstrate the company's conservative approach to financial risk management and its ability to maintain a healthy balance between debt and equity in its capital structure.
Coverage ratios
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.03 | 1.05 | 2.96 | 4.46 | 8.74 | 7.42 | 7.90 | 8.39 | 8.00 | 14.89 | 24.61 | 48.28 | 2,308.43 | — | — | — | — | 70.43 | 38.26 | 28.81 |
The interest coverage ratio for Advanced Energy Industries Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The company's interest coverage ratio was strong, starting at 28.81 on March 31, 2020, indicating the company had sufficient earnings to cover its interest expenses by almost 29 times.
The ratio improved over the next few quarters, reaching 70.43 on September 30, 2020. However, the data for the latter part of 2020 and the first half of 2021 is not available, represented by "—" indicating a lack of disclosed information.
In December 31, 2021, there was a significant surge in the interest coverage ratio to 2,308.43, which may not be sustainable or may be the result of certain anomalies in the financials for that period.
Subsequently, the interest coverage ratio declined to 4.46 on March 31, 2024, and continued to decrease over the following quarters. The ratio reached its lowest point of 1.05 on September 30, 2024, which might indicate potential concerns about the company's ability to cover its interest payments from its operating earnings.
Overall, fluctuations in the interest coverage ratio of Advanced Energy Industries Inc suggest varying levels of earnings available to cover interest expenses during the analyzed period, with the need for closer monitoring of the company's financial performance and debt servicing capabilities.