Belden Inc (BDC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.34 | 0.37 | 0.37 | 0.43 | 0.50 |
| Debt-to-capital ratio | 0.47 | 0.51 | 0.50 | 0.60 | 0.68 |
| Debt-to-equity ratio | 0.87 | 1.03 | 1.02 | 1.53 | 2.10 |
| Financial leverage ratio | 2.57 | 2.78 | 2.77 | 3.58 | 4.18 |
Belden Inc's solvency ratios show a positive trend over the years, indicating improving financial health in terms of debt management and leverage.
- The Debt-to-assets ratio has decreased from 0.50 in 2020 to 0.34 in 2024, showing that the company has reduced its reliance on debt to finance its assets.
- The Debt-to-capital ratio has also shown a decline from 0.68 in 2020 to 0.47 in 2024, reflecting a decreasing dependence on debt as a source of capital.
- The Debt-to-equity ratio has seen a notable improvement from 2.10 in 2020 to 0.87 in 2024, suggesting a decrease in the proportion of debt to equity financing in the company's capital structure.
- The Financial leverage ratio has decreased from 4.18 in 2020 to 2.57 in 2024, signaling a reduction in the company's financial risk and leverage level over the years.
Overall, the decreasing trend in these solvency ratios indicates that Belden Inc has been effectively managing its debt levels and improving its financial position in terms of solvency, which may enhance its ability to meet its financial obligations and withstand economic challenges in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.96 | 962.18 | 1,408.27 | 18,834.00 | 8,830.24 |
Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on outstanding debt. Higher interest coverage ratios are generally preferred as they signify a stronger ability to meet interest obligations.
Analyzing Belden Inc's interest coverage ratio over the past five years, we observe significant fluctuations. In December 2020, the interest coverage ratio was 8,830.24, indicating a robust ability to cover interest payments. This high value suggests the company had ample earnings to cover its interest expenses.
By December 2021, the interest coverage ratio had increased substantially to 18,834.00, a positive sign of improved financial health and increased profitability. This sharp rise in the ratio suggests a significant increase in earnings relative to interest expenses.
However, the trend reversed in the following years. By December 2022, the interest coverage ratio dropped to 1,408.27, and further decreased to 962.18 by December 2023. These declining ratios raise concerns about the company's ability to cover its interest obligations adequately.
In the most recent year, December 2024, Belden Inc's interest coverage ratio plummeted to 6.96, indicating a significant reduction in earnings relative to interest payments. This downward trend may signal potential financial strain and the need to carefully manage debt levels and interest obligations in the future.
Overall, Belden Inc's interest coverage ratio has exhibited significant variability over the past five years, with periods of exceptionally high and low ratios. The company should closely monitor this ratio to ensure it maintains a healthy balance between earnings and interest expenses to support sustainable financial performance.