IPG Photonics Corporation (IPGP)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Financial leverage ratio | 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 | 1.14 | 1.15 | 1.16 | 1.16 |
The solvency ratios of IPG Photonics Corp indicate a consistently strong financial position with minimal debt relative to its assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have remained at very low levels of 0.00 throughout the past eight quarters, except for a slight increase to 0.01 in Q1 2023. This signifies that the company is primarily financed by equity rather than debt, which reduces its financial risk and increases its ability to withstand adverse economic conditions.
Furthermore, the financial leverage ratio, which measures the proportion of assets funded by debt, has also been relatively stable around 1.12 to 1.16 over the same period. This indicates that IPG Photonics Corp has a moderate level of financial leverage, with the majority of its assets financed through equity.
Overall, the low debt levels and stable financial leverage ratios suggest that IPG Photonics Corp has a strong solvency position, with a solid financial structure that provides stability and resilience to potential economic challenges.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 13.81 | 4.65 | 5.38 | 7.51 | 13.28 | 62.09 | 160.99 | 263.21 | 200.05 | 255.55 | 128.29 | 65.74 | 31.68 | 6.57 | 7.27 | 8.38 | 9.00 | 15.85 | 18.11 | 25.57 |
Based on the available data for IPG Photonics Corp, the interest coverage ratio for Q1 2022 was 253.48. Unfortunately, there is a lack of information provided for the subsequent quarters in 2023 and the prior quarters in 2022, which limits a trend analysis or comparison of interest coverage over time.
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations using its operating income. In the case of IPG Photonics Corp, the interest coverage of 253.48 in Q1 2022 suggests that the company had a strong ability to cover its interest expenses through its earnings at that point in time.
However, without additional data points, it is challenging to assess whether this level of interest coverage has been consistent or if there have been any significant changes in the company's ability to service its debt obligations. Therefore, it would be beneficial to have a more comprehensive dataset to conduct a more thorough analysis of IPG Photonics Corp's interest coverage trend.