Amphenol Corporation (APH)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.27 | 0.34 | 0.33 | 0.31 |
| Debt-to-capital ratio | 0.31 | 0.37 | 0.44 | 0.43 | 0.43 |
| Debt-to-equity ratio | 0.45 | 0.60 | 0.79 | 0.75 | 0.75 |
| Financial leverage ratio | 1.98 | 2.18 | 2.33 | 2.29 | 2.39 |
The solvency ratios of Amphenol Corp. for the past five years show a consistent trend of improvement in terms of debt management and financial leverage. The debt-to-assets ratio has decreased steadily from 0.33 in 2019 to 0.26 in 2023, indicating a healthier balance between debt and assets. Similarly, the debt-to-capital and debt-to-equity ratios have also shown a declining trend over the same period, indicating a lower reliance on debt financing relative to total capital and equity.
Furthermore, the financial leverage ratio, which measures the company's use of debt to finance its assets, has also decreased from 2.39 in 2019 to 1.98 in 2023. This indicates that the company has been able to reduce its financial risk by decreasing its reliance on debt to fund its operations.
Overall, the improving trend in solvency ratios for Amphenol Corp. suggests that the company has been effectively managing its debt levels and financial leverage, which may enhance its ability to meet its financial obligations and create value for its shareholders in the long run.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 18.47 | 20.10 | 18.32 | 14.14 | 13.64 |
Amphenol Corp.'s interest coverage ratio has shown a consistently strong performance over the past five years, with values well above 1, indicating that the company has more than enough earnings to cover its interest expenses. The company's interest coverage ratio has been consistently above 10, which is considered very healthy and indicates that Amphenol Corp. is comfortably able to meet its interest obligations. This trend suggests that the company is effectively managing its debt and generating sufficient operating income to service its interest payments. Overall, the consistent and high interest coverage ratio of Amphenol Corp. is a positive indicator of the company's financial health and ability to meet its debt obligations.