Amphenol Corporation (APH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.23 | 0.27 | 0.34 | 0.33 |
| Debt-to-capital ratio | 0.39 | 0.31 | 0.37 | 0.44 | 0.43 |
| Debt-to-equity ratio | 0.64 | 0.45 | 0.60 | 0.79 | 0.75 |
| Financial leverage ratio | 2.19 | 1.98 | 2.18 | 2.33 | 2.29 |
Amphenol Corporation's solvency ratios show a favorable trend over the past five years. The Debt-to-assets ratio has decreased steadily from 0.34 in 2021 to 0.29 in 2024, indicating that the company has been able to reduce its reliance on debt to finance its assets.
Similarly, the Debt-to-capital ratio has shown a decreasing trend from 0.44 in 2021 to 0.39 in 2024, suggesting that the company's capital structure is becoming more balanced with a lower proportion of debt.
The Debt-to-equity ratio has fluctuated but has generally decreased from 0.79 in 2021 to 0.64 in 2024, indicating a decreasing dependence on debt financing relative to equity.
Finally, the Financial leverage ratio has decreased overall from 2.33 in 2021 to 2.19 in 2024, suggesting that the company's reliance on debt has decreased, which is a positive sign for its solvency and financial stability.
Overall, the solvency ratios of Amphenol Corporation demonstrate an improving financial position and suggest that the company is effectively managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 14.55 | 18.47 | 20.10 | 18.32 | 14.14 |
Amphenol Corporation's interest coverage ratio has shown a consistent upward trend over the past five years, starting at 14.14 in 2020 and steadily increasing to 18.32 in 2021, 20.10 in 2022, 18.47 in 2023, and then slightly decreasing to 14.55 in 2024. This indicates the company's ability to meet its interest obligations comfortably with its operating income. Overall, the upward trend in the interest coverage ratio demonstrates Amphenol's strong financial health and capacity to service its debt obligations. However, the slight decrease in 2024 may warrant further monitoring to ensure that the company continues to have a sufficient buffer to cover its interest expenses in the future.