Azenta Inc (AZTA)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.03 | 0.03 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.04 | 0.04 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.04 | 0.04 |
| Financial leverage ratio | 1.19 | 1.14 | 1.10 | 1.37 | 1.28 |
Based on the solvency ratios of Azenta Inc from 2020 to 2024, we observe significant consistency in the company's low levels of indebtedness and strong financial position. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at zero, indicating that the company has not relied on debt to finance its operations and investments during this period. This suggests a conservative financial management approach and a lower risk of financial distress due to debt obligations.
Furthermore, the financial leverage ratio has also shown a decreasing trend from 1.37 in 2021 to 1.19 in 2024. This indicates that the company has gradually reduced its reliance on debt funding over the years in relation to its equity, leading to a stronger financial position and potentially lower financial risk.
Overall, the solvency ratios of Azenta Inc reflect a prudent financial strategy focused on maintaining a strong balance sheet and sustainable financial health. These results indicate a positive picture of the company's ability to meet its financial obligations and endure economic challenges, while also demonstrating a strong foundation for future growth and stability.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | -1,828.15 | 466.07 | 45.50 | 18.30 |
The interest coverage ratio for Azenta Inc has shown significant variability over the past five years. In 2024, the ratio was not available (—), indicating potential issues with generating enough operating income to cover interest expenses.
In 2023, the interest coverage ratio was very low at -1,828.15, suggesting that the company's operating income was insufficient to cover its interest payments, signaling financial distress.
However, there was a substantial improvement in 2022 with an interest coverage ratio of 466.07, indicating a significant increase in the company's ability to meet interest obligations from operating income.
The trend continued in 2021 with an interest coverage ratio of 45.50, demonstrating further improvement in the company's ability to cover interest expenses with operating income.
In 2020, the interest coverage ratio was 18.30, showing a continuation of the positive trend in managing interest payments with operating earnings.
Overall, Azenta Inc has made significant progress in strengthening its interest coverage ratio over the years. However, it is advisable for the company to maintain a consistent and healthy interest coverage ratio to ensure it can meet its interest obligations comfortably in the long term.