Calix Inc (CALX)
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 | 1.31 | 1.30 | 1.31 | 1.52 | 2.06 |
Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Calix Inc over the past five years, we observe a consistent trend of improvement in the company's financial health and reduced reliance on debt.
The debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, has shown a significant decline from 0.09 in 2019 to 0.00 in 2023. This indicates that Calix Inc has been successful in reducing its debt levels relative to its total assets, which is a positive sign for investors and creditors.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have followed a similar downward trend, decreasing from 0.16 and 0.19 in 2019 to 0.01 for both ratios in 2023. This suggests that Calix Inc has been progressively relying less on debt to finance its operations and has been strengthening its capital structure over the years.
The financial leverage ratio, which measures the company's reliance on debt financing compared to equity, has also shown a consistent improvement, decreasing from 2.06 in 2019 to 1.31 in 2023. This indicates that Calix Inc's financial risk has been decreasing as it has reduced its leverage and become less dependent on debt to fund its operations.
Overall, the solvency ratios of Calix Inc reflect a positive trend towards a stronger financial position, with reduced debt levels and improved capital structure. This trend suggests that the company is managing its long-term financial obligations effectively and may be better positioned to weather economic uncertainties in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.64 | 26.19 | 183.93 | 23.25 | -16.08 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
From the data provided, we see a significant improvement in Calix Inc's interest coverage ratio over the years. In 2021, the interest coverage ratio was 181.97, reflecting a substantial increase from 2020 when it was 27.21. This indicates that in 2021, Calix Inc generated operating income that was 181.97 times its interest expense, showcasing a strong ability to cover its interest obligations.
It is noteworthy that in 2020, the interest coverage ratio was significantly lower at 27.21 compared to 2021, but still positive. However, in 2019, the interest coverage ratio was negative at -13.49, indicating that the company's operating income was not sufficient to cover its interest expenses at that time.
Overall, the trend of increasing interest coverage ratios from 2019 to 2021 reflects a positive trajectory for Calix Inc in terms of its ability to meet its interest payment obligations with its operating income.