IPG Photonics Corporation (IPGP)
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 | 1.13 | 1.12 | 1.15 | 1.15 | 1.13 |
IPG Photonics Corporation has consistently maintained a strong solvency position over the years, as indicated by the low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which were reported as 0.00 for the period from December 31, 2020, to December 31, 2024. This suggests that the company has a low level of debt relative to its assets, capital, and equity, highlighting its ability to finance its operations primarily through internal resources rather than external borrowing.
Furthermore, the financial leverage ratio, which measures the extent to which a company is utilizing debt to finance its operations, has shown slight fluctuations between 1.12 and 1.15 during the same period. Despite these minor variations, the financial leverage ratio remains relatively stable year over year, indicating that IPG Photonics Corporation has maintained a balanced capital structure and has not significantly increased its reliance on debt to fund its activities. Overall, these solvency ratios reflect the company's sound financial position and prudent management of its debt levels, which may contribute to its overall stability and financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 5.55 | 23.37 | 200.28 | 3.90 |
The interest coverage ratio for IPG Photonics Corporation has shown significant fluctuations over the past few years. In December 2020, the ratio was 3.90, indicating the company's ability to cover its interest expenses was relatively low. However, by December 2021, the ratio significantly improved to 200.28, showing a substantial increase in the company's ability to cover interest payments with its earnings.
In the following years, the interest coverage ratio continued to vary. By December 2022, the ratio decreased to 23.37, suggesting a decline in the company's ability to cover interest expenses compared to the previous year. In December 2023, the ratio further decreased to 5.55, indicating a potential strain on the company's ability to meet interest obligations.
However, it is important to note that the data for December 2024 is not available (marked as "—"), making it challenging to analyze the most recent financial position of IPG Photonics Corporation in terms of interest coverage.
Overall, the fluctuations in the interest coverage ratio highlight the importance of monitoring the company's ability to meet its interest payments on time and evaluate the impact of these changes on its financial health and stability.