Benchmark Electronics Inc (BHE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.11 | 2.17 | 1.96 | 1.76 | 1.73 |
Solvency ratios are important metrics that provide insight into a company's ability to meet its long-term financial obligations. Let's analyze Benchmark Electronics Inc.'s solvency ratios over the past five years:
1. Debt-to-assets ratio:
- The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Benchmark Electronics Inc. has maintained a relatively stable debt-to-assets ratio of around 0.07 to 0.15 over the period analyzed, indicating a conservative level of debt relative to its total assets.
2. Debt-to-capital ratio:
- The debt-to-capital ratio shows the extent to which a company's operations are financed by debt compared to its total capital (debt + equity). Benchmark Electronics Inc. has exhibited a consistent trend with this ratio hovering around 0.12 to 0.24, suggesting a balanced capital structure with a reasonable level of debt.
3. Debt-to-equity ratio:
- The debt-to-equity ratio reflects the amount of debt relative to shareholders' equity. Benchmark Electronics Inc. has maintained a stable debt-to-equity ratio ranging from 0.13 to 0.32 during the period reviewed, indicating a moderate level of debt compared to equity.
4. Financial leverage ratio:
- The financial leverage ratio indicates the proportion of a company's assets that are financed by debt. Benchmark Electronics Inc.'s financial leverage ratio has shown a slight upward trend, ranging from 1.73 to 2.17, which suggests an increasing reliance on debt to support its operations.
Overall, Benchmark Electronics Inc.'s solvency ratios demonstrate prudent management of debt levels, with a consistent and moderate use of leverage to support its capital structure. The company's stable and relatively low debt levels relative to assets and capital indicate a healthy financial position with a manageable level of long-term debt obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.55 | 7.54 | 6.36 | 3.07 | 5.09 |
Benchmark Electronics Inc.'s interest coverage has shown fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. The trend analysis reveals a declining pattern from 2019 to 2023. The interest coverage ratio has decreased from 17.40 in 2019 to 4.61 in 2023, indicating a potential decrease in the company's ability to cover its interest expense with its operating income. A higher interest coverage ratio is generally seen as favorable, as it suggests the company has more earnings available to meet interest payments. However, the decreasing trend in interest coverage for Benchmark Electronics Inc. may raise concerns regarding its financial health and ability to service its debt obligations in the future. Further analysis and monitoring of the company's financial performance and debt management are recommended to assess the sustainability of its interest coverage ratio.