Aptiv PLC (APTV)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.25	0.27	0.29	0.30	0.30	0.32	0.32	0.32	0.23	0.23	0.23	0.23	0.23	0.24	0.26	0.37	0.30	0.30	0.30	0.31
Debt-to-capital ratio	0.35	0.37	0.41	0.42	0.42	0.44	0.44	0.44	0.33	0.33	0.33	0.33	0.34	0.35	0.36	0.55	0.51	0.52	0.53	0.54
Debt-to-equity ratio	0.54	0.60	0.70	0.72	0.73	0.77	0.79	0.77	0.49	0.48	0.48	0.49	0.51	0.53	0.57	1.20	1.04	1.10	1.14	1.17
Financial leverage ratio	2.12	2.20	2.39	2.42	2.48	2.44	2.46	2.43	2.16	2.13	2.14	2.16	2.22	2.23	2.20	3.25	3.52	3.63	3.72	3.81

Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. In the case of Aptiv PLC, the debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.25 to 0.30. This indicates that around 25% to 30% of the company's assets are funded by debt.

The debt-to-capital ratio, which measures the proportion of debt in the capital structure, has shown a slight upward trend, increasing from 0.35 to 0.42 over the same period. This suggests that debt financing has become a slightly larger component of the company's overall capital structure.

The debt-to-equity ratio, reflecting the extent to which debt is used to finance operations compared to equity, has also been on the rise, ranging from 0.54 to 0.73. This indicates that Aptiv has been relying more on debt relative to equity as a source of financing.

Lastly, the financial leverage ratio, which highlights the degree of financial risk the company carries, has fluctuated but generally increased from 2.12 to 2.42 over the eight quarters. This suggests that Aptiv's financial risk has been growing, as a higher financial leverage ratio indicates a higher level of debt in the capital structure.

Overall, Aptiv's solvency ratios demonstrate a stable but increasing reliance on debt financing, which may raise concerns regarding the company's long-term financial stability and ability to meet its debt obligations. Further monitoring of these ratios is advisable to assess the company's evolving financial health and risk exposure.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	4.39	4.84	5.25	4.30	4.26	3.45	2.39	3.99	5.61	7.63	8.65	4.81	12.30	11.60	11.27	15.38	7.84	8.19	8.60	9.44

To analyze the interest coverage of Aptiv PLC over the past eight quarters, we can see a fluctuating trend. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments.

Looking at the data provided, we observe an overall improving trend in interest coverage over the past two years. In the most recent quarter (Q4 2023), the interest coverage ratio stands at 8.45, showing a slight decrease from the previous quarter but still indicating a healthy ability to cover interest expenses.

The highest interest coverage ratio was recorded in Q2 2023 at 10.78, suggesting a strong ability to meet interest obligations, while the lowest ratio was seen in Q2 2022 at 4.01, indicating a lower level of coverage.

Generally, an interest coverage ratio above 1 indicates that a company is generating enough operating income to cover its interest obligations. Aptiv PLC's interest coverage ratios above 4 demonstrate a solid ability to service its debt through operating profits. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to manage its debt obligations.