Cognex Corporation (CGNX)
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 | 1.31 | 1.34 | 1.36 | 1.40 | 1.43 |
Cognex Corporation's solvency ratios indicate a strong financial position with minimal debt obligations.
1. Debt-to-assets ratio: Throughout the years 2020 to 2024, Cognex Corporation maintained a debt-to-assets ratio of 0.00, implying that the company does not rely on debt to finance its assets. This suggests a low level of financial risk and a healthy balance sheet structure.
2. Debt-to-capital ratio: The debt-to-capital ratio also remained at 0.00 during the same period, indicating that the company's capital structure is primarily financed through equity rather than debt. This highlights Cognex Corporation's ability to maintain financial stability without incurring significant debt burdens.
3. Debt-to-equity ratio: Cognex Corporation's debt-to-equity ratio was consistently reported at 0.00 from 2020 to 2024, demonstrating that the company has no financial leverage in its capital structure. This signifies a conservative approach to financing operations and investments.
4. Financial leverage ratio: The financial leverage ratio showed a decreasing trend from 1.43 in 2020 to 1.31 in 2024. This indicates a gradual reduction in the company's reliance on debt financing over the years, strengthening its financial position and reducing potential risks associated with high leverage.
Overall, Cognex Corporation's solvency ratios reflect a prudent financial strategy focused on maintaining a healthy balance between debt and equity, ultimately leading to a strong and stable financial position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 15.09 | 11.30 | 4.50 |
Interest coverage is a financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. In the case of Cognex Corporation, the interest coverage ratio has shown an improving trend over the years.
As of December 31, 2020, the interest coverage ratio was 4.50, indicating that the company's operating income was able to cover its interest expenses 4.5 times. By December 31, 2021, the interest coverage ratio had significantly increased to 11.30, reflecting a stronger ability to cover interest payments.
Continuing this positive trend, the interest coverage ratio further improved to 15.09 by December 31, 2022, demonstrating a solid capacity to meet interest obligations. However, data for December 31, 2023 and December 31, 2024 is unavailable (represented as "—"), potentially indicating incomplete information for those periods.
Overall, the increasing trend in Cognex Corporation's interest coverage ratio suggests an enhanced ability to service its debt through operating income. This could reflect positively on the company's financial health and its ability to manage debt obligations effectively. Investors and creditors often view a higher interest coverage ratio as a favorable indicator of a company's financial stability.