Keysight Technologies Inc (KEYS)
Solvency ratios
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.22 | 0.23 | 0.25 | 0.27 |
| Debt-to-capital ratio | 0.20 | 0.30 | 0.32 | 0.35 | 0.37 |
| Debt-to-equity ratio | 0.26 | 0.43 | 0.47 | 0.54 | 0.60 |
| Financial leverage ratio | 1.87 | 1.95 | 2.06 | 2.19 | 2.20 |
The solvency ratios of Keysight Technologies Inc indicate a consistent improvement in the company's ability to meet its long-term obligations and manage its financial leverage over the past five years. The debt-to-assets ratio has declined from 0.27 in 2019 to 0.21 in 2023, reflecting a decreasing reliance on debt to finance the company's assets. Similarly, the debt-to-capital and debt-to-equity ratios have shown a downward trend, indicating a reduction in the proportion of debt used to finance the company's operations in relation to its capital and equity.
Furthermore, the financial leverage ratio has also demonstrated a favorable downward trajectory, declining from 2.20 in 2019 to 1.87 in 2023. This suggests that the company has been successful in managing its financial leverage and reducing its reliance on debt financing, thereby potentially lowering the associated financial risk.
Overall, the declining trend in these solvency ratios indicates an improving financial position and reduced risk for Keysight Technologies Inc, signaling a positive trend in the company's ability to meet its long-term financial obligations and demonstrating prudent management of its capital structure.
Coverage ratios
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 17.41 | 16.89 | 13.67 | 9.81 | 8.89 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.
Keysight Technologies Inc's interest coverage ratios for the past five years are as follows:
- 2023: Data not available
- 2022: 21.05
- 2021: 13.99
- 2020: 10.76
- 2019: 12.47
The trend in interest coverage for Keysight Technologies Inc shows a generally positive ability to cover interest expenses. The ratio in 2022 indicates a strong ability to meet interest payments. However, the lack of data for 2023 makes it difficult to assess the current state of the company's interest coverage.
Overall, based on the available data, Keysight Technologies Inc has demonstrated a relatively consistent ability to cover its interest expenses over the years, indicating a sound financial position in terms of meeting its debt obligations.