Cirrus Logic Inc (CRUS)

The solvency ratios of Cirrus Logic Inc indicate consistently low levels of debt in relation to its assets, capital, and equity over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00, suggesting that the company operates with minimal debt obligations in proportion to its financial resources.

Furthermore, the financial leverage ratio has shown a slight fluctuation over the years, with a peak of 1.33 in 2022 and a low of 1.23 in 2024. This ratio indicates that the company's reliance on debt to finance its operations and investments is relatively conservative, as a ratio of 1 would indicate a balanced level of debt and equity.

Overall, Cirrus Logic Inc's solvency ratios reflect a prudent financial approach with limited debt exposure, which enhances the company's financial stability and ability to withstand economic challenges and uncertainties.

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Coverage ratios

The interest coverage ratio for Cirrus Logic Inc has exhibited a generally strong trend over the past five years, indicating the company's ability to comfortably meet its interest obligations from its operating income. The ratio has consistently remained well above 1, with values of 233.02 in 2021, 389.89 in 2022, 284.67 in 2023, and 375.37 in 2024, demonstrating an increasing trend in recent years. This signifies that the company's earnings are significantly more than its interest expenses, reflecting the firm's financial stability and sound operating performance. A higher interest coverage ratio indicates better solvency and financial health, as it suggests that the company has sufficient earnings to cover its interest payments multiple times over. Overall, the consistent improvement in Cirrus Logic Inc's interest coverage ratio reflects a positive financial position and ability to manage its debt obligations effectively.