IPG Photonics Corporation (IPGP)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.13 | 1.11 | 1.11 | 1.11 | 1.12 | 1.12 | 1.12 | 1.14 | 1.15 | 1.15 | 1.16 | 1.14 | 1.15 | 1.15 | 1.14 | 1.13 | 1.13 | 1.13 | 1.13 | 1.14 |
IPG Photonics Corporation has consistently maintained a strong solvency position over the reviewed period, as evidenced by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00. This indicates that the company has minimal debt relative to its assets, capital, and equity.
Furthermore, the financial leverage ratio has shown some fluctuation but generally remained around the 1.1 to 1.2 range, reflecting a moderate level of financial leverage. This suggests that IPG Photonics has effectively managed its debt levels and has not been overly reliant on debt financing to support its operations.
Overall, the solvency ratios indicate that IPG Photonics Corporation has a strong financial position and is well-equipped to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 0.87 | 3.30 | 3.97 | 4.54 | 7.50 | 6.38 | 9.67 | 16.46 | 55.19 | 161.47 | 253.48 | 195.86 | 258.95 | 146.82 | 80.00 | 36.92 | 10.37 | 9.22 | 9.81 |
The interest coverage ratio measures a company's ability to meet its debt obligations by comparing its operating income to its interest expense. A higher ratio indicates a better ability to cover interest expenses.
In the case of IPG Photonics Corporation, the interest coverage ratio has fluctuated over the years. From March 31, 2020, to June 30, 2022, the company maintained a healthy interest coverage ratio above 9, indicating a strong ability to cover its interest expenses. The ratio peaked at an impressive 258.95 on September 30, 2021, and remained significantly high until June 30, 2022.
However, starting from September 30, 2022, the interest coverage ratio began to decline, dropping to 0.87 by September 30, 2024. This sharp decrease suggests that the company may be facing challenges in meeting its interest payments with its operating income.
It is essential for investors and stakeholders to closely monitor IPG Photonics Corporation's interest coverage ratio to assess its financial health and ability to manage its debt obligations effectively. The declining trend in the interest coverage ratio raises concerns about the company's financial stability and underscores the importance of a thorough financial analysis.