Calix Inc (CALX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.20 | 1.31 | 1.30 | 1.31 | 1.52 |
Calix Inc's solvency ratios reflect a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity over the years studied. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio remained stable at 0.00 from December 31, 2020, to December 31, 2024, indicating that the company operates with minimal financial leverage and has no significant debt burden.
The Financial leverage ratio, which declined from 1.52 in 2020 to 1.20 in 2024, suggests that the company's reliance on debt to fund its operations decreased over this period. This downward trend in the financial leverage ratio indicates an improvement in Calix Inc's ability to meet its financial obligations with its existing capital resources.
Overall, the solvency ratios of Calix Inc demonstrate strong financial stability and a prudent approach to managing its debt levels, which may enhance investor confidence in the company's long-term sustainability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 2.64 | 24.20 | 181.73 | 22.63 |
Interpreting the interest coverage ratios of Calix Inc from 2020 to 2024 provides insight into the company's ability to meet its interest payment obligations. In 2020, the interest coverage was 22.63, indicating that the company generated earnings over 22 times its interest expenses. This high coverage suggests a strong ability to cover interest payments comfortably.
The interest coverage significantly improved in 2021, reaching a ratio of 181.73, reflecting a substantial increase in earnings relative to interest expenses. This exceptionally high coverage indicates a very robust capability to cover interest costs, implying lower financial risk and greater financial stability.
By 2022, the interest coverage ratio declined to 24.20 from the peak in 2021 but remained at a comfortable level. This suggests that the company still has a solid ability to meet its interest obligations with its earnings.
However, in 2023, there was a significant decrease in the interest coverage ratio to 2.64. This sharp decline indicates that Calix Inc's earnings may not be sufficient to cover its interest expenses adequately. A low interest coverage ratio implies higher financial risk as the company may struggle to meet its interest payments from operating income.
The data for 2024 shows "—" which indicates information is not available or significant changes in the company's financial reporting. It is essential to monitor future financial reports to understand the reasons behind the missing data and assess the company's financial health accurately.
In conclusion, Calix Inc's interest coverage has shown fluctuations over the years, with significant improvements in some years and a notable decline in others. Monitoring the trend in interest coverage ratios is crucial for stakeholders to evaluate the company's financial health and risk profile effectively.