Belden Inc (BDC)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 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
Debt-to-assets ratio 0.34 0.36 0.33 0.38 0.37 0.37 0.38 0.38 0.37 0.35 0.38 0.40 0.43 0.45 0.47 0.48 0.50 0.49 0.48 1.42
Debt-to-capital ratio 0.47 0.50 0.49 0.51 0.51 0.49 0.51 0.51 0.50 0.48 0.52 0.56 0.60 0.61 0.64 0.64 0.68 0.65 0.65 0.59
Debt-to-equity ratio 0.87 0.99 0.95 1.02 1.03 0.96 1.02 1.04 1.02 0.92 1.09 1.28 1.53 1.59 1.76 1.80 2.10 1.89 1.87 1.46
Financial leverage ratio 2.57 2.70 2.89 2.70 2.78 2.61 2.70 2.71 2.77 2.61 2.89 3.17 3.58 3.55 3.77 3.75 4.18 3.83 3.86 1.03

Belden Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent of financial risk it carries:

1. Debt-to-Assets Ratio: This ratio indicates the proportion of Belden's assets financed by debt. The trend shows a decreasing pattern from 1.42 in March 2020 to 0.34 in December 2024. The declining ratio suggests that Belden has been reducing its reliance on debt to finance its assets over the years.

2. Debt-to-Capital Ratio: This ratio represents the proportion of Belden's capital structure that is debt-financed. The ratio has trended downwards from 0.59 in March 2020 to 0.47 in December 2024. The decreasing trend indicates a lower dependency on debt in the company's capital structure.

3. Debt-to-Equity Ratio: The debt-to-equity ratio reflects the relative contribution of debt and equity to Belden's capital. The ratio has shown a decreasing trend from 1.46 in March 2020 to 0.87 in December 2024. This suggests that the company has been reducing its debt levels in relation to equity, which may indicate improved financial stability.

4. Financial Leverage Ratio: This ratio measures the extent to which Belden is using debt to finance its operations. The ratio has decreased from 1.03 in March 2020 to 2.57 in December 2024. The decline in the financial leverage ratio implies that the company has been reducing its reliance on debt to generate earnings and fund its activities.

Overall, the solvency ratios of Belden Inc demonstrate a positive trend towards a lower reliance on debt for financing its operations and a healthier balance between debt and equity in its capital structure over the reviewed period.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 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
Interest coverage 8.64 12.01 28.10 793.87 962.18 1,184.48 1,344.99 1,130.57 1,408.27 1,800.75 2,188.58 16,838.18 18,834.00 18,655.93 17,121.00 11,423.60 8,830.24 6,650.79 7,037.14 8,235.87

The interest coverage ratio, calculated as earnings before interest and taxes (EBIT) divided by interest expense, reflects a company's ability to meet its interest obligations from its operating income. Looking at the historical trend of Belden Inc's interest coverage ratio, we observe fluctuations over time.

As of March 31, 2020, Belden Inc had a robust interest coverage ratio of 8,235.87, indicating a very strong ability to cover its interest expenses. However, this ratio decreased over the subsequent quarters, reaching a low of 28.10 on June 30, 2024, which may raise concerns about the company's ability to meet its interest payments comfortably.

It's important to note that a declining interest coverage ratio could signal that the company's earnings are not sufficient to cover its interest expenses, potentially leading to liquidity issues or default risk. It would be advisable for stakeholders to assess the reasons behind the significant fluctuations in Belden Inc's interest coverage and monitor closely for any improvement or deterioration in the company's financial performance.