Keysight Technologies Inc (KEYS)
Solvency ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.14 | 0.22 | 0.23 | 0.25 |
| Debt-to-capital ratio | 0.26 | 0.20 | 0.30 | 0.32 | 0.35 |
| Debt-to-equity ratio | 0.35 | 0.26 | 0.43 | 0.47 | 0.54 |
| Financial leverage ratio | 1.82 | 1.87 | 1.95 | 2.06 | 2.19 |
The solvency ratios of Keysight Technologies Inc indicate the company's ability to meet its long-term financial obligations and the extent of its leverage.
Debt-to-assets ratio:
- The trend shows a slight increase from 2020 to 2022 but has decreased in 2023 and 2024.
- It indicates that only 19% of the company's assets are financed by debt in 2024.
Debt-to-capital ratio:
- The ratio increased from 2020 to 2022 but has decreased in 2023 and 2024.
- Keysight Technologies Inc relies on debt for 26% of its capital in 2024.
Debt-to-equity ratio:
- There is a declining trend from 2020 to 2024, indicating a reduction in the company's reliance on debt financing.
- In 2024, 35% of the company's total equity is financed by debt.
Financial leverage ratio:
- The ratio has been decreasing from 2020 to 2024, showing a trend towards lower financial leverage.
- It means that for every dollar of equity, Keysight Technologies Inc had $1.82 of total assets in 2024.
Overall, Keysight Technologies Inc's solvency ratios suggest a relatively conservative approach to debt financing, as evidenced by the decreasing trends in the debt-to-assets, debt-to-capital, debt-to-equity ratios, and financial leverage ratio. This indicates that the company has been strengthening its financial position and reducing its reliance on debt in recent years.
Coverage ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.30 | 17.41 | 16.89 | 13.67 | 9.81 |
Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on outstanding debt. Keysight Technologies Inc has shown consistently solid interest coverage ratios over the past five years, ranging from 9.81 to 17.41. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its operating income.
In particular, the interest coverage ratio for Oct 31, 2023, was the highest at 17.41, indicating that Keysight Technologies Inc had more than enough operating income to cover its interest expenses at that time. The ratios for the following years, though slightly lower, still demonstrate a healthy ability to manage interest payments.
Overall, the trend in Keysight Technologies Inc's interest coverage ratios shows a stable and healthy financial position, reflecting the company's ability to generate sufficient income to cover its interest obligations.