Cognex Corporation (CGNX)
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 | 1.34 | 1.36 | 1.40 | 1.43 | 1.39 |
Cognex Corp. has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been at 0.00 for the past five years, indicating that the company has not used debt financing to fund its operations or investments during this period.
However, the financial leverage ratio has shown some variability over the years, ranging from 1.34 to 1.43. A financial leverage ratio above 1 indicates that the company has some degree of financial leverage, with ratios closer to 1.5 typically considered moderate. Despite the slight fluctuations, the financial leverage ratio for Cognex Corp. has remained relatively stable and within reasonable levels, indicating a balanced mix of debt and equity in its capital structure.
Overall, based on the solvency ratios provided, Cognex Corp. appears to have a solid financial position with minimal reliance on debt financing, which is a positive indicator of its financial stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 15.09 | 11.30 | 4.50 | 2.17 |
I do not have the specific interest coverage ratio data for Cognex Corp. for the years provided. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher ratio indicates that the company is more capable of servicing its interest payments. A declining ratio over time may indicate increasing financial risk and decreased ability to cover interest expenses from earnings.
Without the actual interest coverage ratio figures, it is challenging to assess the company's ability to meet its interest obligations. I recommend obtaining the necessary financial data to calculate the interest coverage ratio for a thorough analysis of Cognex Corp.'s financial health in terms of its ability to cover interest expenses.