Belden Inc (BDC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.37 | 0.43 | 0.50 | 0.42 |
| Debt-to-capital ratio | 0.51 | 0.50 | 0.60 | 0.68 | 0.60 |
| Debt-to-equity ratio | 1.03 | 1.02 | 1.53 | 2.10 | 1.50 |
| Financial leverage ratio | 2.78 | 2.77 | 3.58 | 4.18 | 3.55 |
The solvency ratios of Belden Inc provide insight into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has remained relatively stable over the past five years, indicating that Belden has maintained a healthy balance between debt and assets. The ratio of 0.37 in 2023 suggests that 37% of the company's assets are funded by debt.
Similarly, the debt-to-capital ratio has also shown consistency over the years, with a slight increase in 2023 to 0.51. This ratio reflects the proportion of Belden's capital structure that is financed through debt, with 51% of the capital derived from debt in 2023.
The debt-to-equity ratio has fluctuated more significantly, but generally on a downward trend in recent years. The ratio of 1.03 in 2023 implies that Belden has $1.03 in debt for every dollar of equity. This indicates a moderate level of financial leverage compared to the equity base.
The financial leverage ratio has followed a similar pattern to the debt-to-equity ratio, signifying the extent to which Belden has employed debt in relation to its equity. The ratio of 2.78 in 2023 suggests that Belden's total assets are 2.78 times larger than its equity, demonstrating a moderate level of financial risk.
In summary, Belden Inc's solvency ratios exhibit a stable and balanced approach to debt financing, indicating a reasonable level of financial stability and capacity to meet long-term obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 962.18 | 1,408.27 | 18,834.00 | 8,830.24 | 9,418.50 |
The interest coverage ratio for Belden Inc has been showing a positive trend over the past five years, indicating an improvement in the company's ability to meet its interest payment obligations from its operating income. The ratio increased from 3.71 in 2019 to 9.08 in 2023, demonstrating a significant strengthening of Belden Inc's ability to cover its interest expenses.
The upward trend in the interest coverage ratio suggests that Belden Inc's operating performance has been improving, leading to a more comfortable position in meeting its interest obligations. This positive trend is a good indicator of the company's financial health and ability to manage its debt burden. Additionally, the consistent improvement in the interest coverage ratio over the years reflects positively on Belden Inc's efficiency in generating earnings relative to its interest expenses.