Entegris Inc (ENTG)

Entegris Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown fluctuation over the years, decreasing from 0.37 in 2020 to 0.29 in 2021, but then increasing to 0.56 in 2022 before slightly declining to 0.47 in 2024. This ratio suggests that the company has been effectively managing its debt relative to its total assets.

The Debt-to-capital ratio has also displayed variability, decreasing from 0.44 in 2020 to 0.35 in 2021, then remaining relatively stable until it rose to 0.57 in 2023, before decreasing to 0.52 in 2024. This ratio indicates the proportion of the company's capital that is financed through debt, and the trend suggests a slight increase in reliance on debt financing in recent years.

The Debt-to-equity ratio saw a significant drop from 0.79 in 2020 to 0.55 in 2021, signaling a lower level of debt relative to equity. However, this ratio then rose sharply to 1.34 in 2023 before moderating to 1.08 in 2024. The increasing trend in recent years may indicate higher leverage and potential financial risk.

The Financial leverage ratio, which reflects the company's debt relative to its equity, showed a decrease from 2.12 in 2020 to 1.86 in 2021, followed by a notable increase to 2.59 in 2023 before slightly declining to 2.27 in 2024. This ratio suggests an increase in financial risk as debt levels have risen compared to equity.

Overall, Entegris Inc's solvency ratios reveal a mix of positive and concerning trends in its debt management and leverage over the analyzed period, highlighting the importance of monitoring and managing financial obligations effectively to ensure financial stability and sustainability.

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Coverage ratios

The interest coverage ratio for Entegris Inc has varied over the past five years.

In December 31, 2020, the interest coverage ratio was 8.29, indicating that the company generated 8.29 times more earnings before interest and taxes than the interest expenses it had to pay. This suggests a relatively healthy ability to meet its interest obligations.

By December 31, 2021, the interest coverage ratio improved to 12.62, showing a stronger ability to cover its interest expenses with operating income.

However, the trend reversed in the following years. As of December 31, 2022, the interest coverage ratio dropped significantly to 2.16, signaling a decrease in the company's ability to cover its interest payments with its operating income.

The ratio further declined to 1.55 by December 31, 2023, indicating a potential financial challenge as the company's earnings may not be sufficient to cover its interest costs.

There was a slight improvement in the interest coverage ratio by December 31, 2024, rising to 2.49. Despite this improvement, the ratio remains relatively low compared to previous years, suggesting that the company still needs to closely monitor its ability to meet its interest obligations.

Overall, the fluctuation in Entegris Inc's interest coverage ratio over the years reflects changes in the company's profitability and its ability to handle its debt obligations. Continued monitoring of this ratio is essential to assess the company's financial health and ability to manage its debt effectively.