Avnet Inc (AVT)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019
Debt-to-assets ratio 0.20 0.20 0.21 0.25 0.24 0.25 0.25 0.17 0.14 0.09 0.12 0.15 0.13 0.11 0.11 0.14 0.18 0.15 0.14 0.13
Debt-to-capital ratio 0.33 0.33 0.35 0.39 0.39 0.40 0.40 0.31 0.26 0.18 0.21 0.25 0.23 0.19 0.19 0.24 0.28 0.25 0.23 0.23
Debt-to-equity ratio 0.49 0.48 0.55 0.64 0.63 0.65 0.67 0.45 0.34 0.22 0.27 0.34 0.29 0.23 0.23 0.32 0.38 0.32 0.30 0.30
Financial leverage ratio 2.48 2.47 2.59 2.62 2.63 2.61 2.69 2.73 2.48 2.30 2.28 2.22 2.19 2.12 2.11 2.22 2.18 2.20 2.15 2.25

Avnet Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.20 to 0.25 over the past few quarters, suggesting that a moderate portion of the company's assets are financed through debt.

The debt-to-capital ratio, which assesses the proportion of the company's capital that is financed through debt, also shows stability around 0.33 to 0.40. This indicates that Avnet Inc relies moderately on debt to fund its operations and investments.

The debt-to-equity ratio has shown some fluctuations, ranging from 0.48 to 0.67. This ratio reflects the extent to which the company's operations are funded by creditors versus shareholders' equity. The increasing trend implies a higher reliance on debt financing compared to equity financing.

The financial leverage ratio, which measures the company's debt relative to its equity, has been fluctuating between 2.10 to 2.73. This indicates that Avnet Inc has been managing its leverage within a moderate range, balancing its debt and equity structure.

Overall, Avnet Inc demonstrates a moderate level of leverage and a relatively stable solvency position based on these solvency ratios. Continuous monitoring of these ratios is crucial to assess the company's ability to meet its long-term obligations and manage its financial risks effectively.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019
Interest coverage 3.24 3.46 3.96 4.66 4.92 6.06 7.53 8.62 9.30 8.22 6.53 4.79 2.93 1.71 -0.65 -0.68 -0.06 -0.33 1.73 2.12

The interest coverage ratio of Avnet Inc has exhibited fluctuations over the past few quarters. The ratio provides an indication of the company's ability to cover its interest expenses with its operating income.

From the data provided:
- The interest coverage ratio has generally been above 1, indicating that Avnet Inc has been able to cover its interest expenses with its operating income in most periods.
- The trend shows that the interest coverage ratio has been relatively healthy, with higher ratios in more recent quarters compared to earlier periods.
- There was a significant decline in the interest coverage ratio in the last few quarters of 2019 and the first quarter of 2020, which suggests potential challenges in meeting interest obligations during that period.
- The ratio improved significantly in 2020 and continued to increase in 2021, reaching its peak in the first half of 2022. This improvement reflects a better ability to cover interest expenses with operating income.
- However, the ratio experienced a slight decline in the most recent quarters of 2024, indicating a potential decrease in the company's ability to cover interest costs with operating profits.

Overall, the trend in Avnet Inc's interest coverage ratio suggests fluctuations in the company's ability to meet its interest obligations, with improvements seen in recent years but some variability in performance in more recent quarters.