Keysight Technologies Inc (KEYS)

Solvency ratios

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Debt-to-assets ratio 0.13 0.14 0.20 0.21 0.21 0.22 0.23 0.23 0.23 0.23 0.23 0.23 0.24 0.25 0.25 0.26 0.26 0.27 0.20 0.21
Debt-to-capital ratio 0.20 0.20 0.27 0.28 0.29 0.30 0.31 0.32 0.32 0.32 0.32 0.34 0.34 0.35 0.35 0.37 0.36 0.37 0.31 0.32
Debt-to-equity ratio 0.25 0.26 0.37 0.38 0.41 0.43 0.46 0.47 0.47 0.47 0.48 0.50 0.51 0.54 0.53 0.58 0.57 0.60 0.44 0.46
Financial leverage ratio 1.88 1.87 1.80 1.85 1.92 1.95 2.00 2.05 2.03 2.06 2.08 2.17 2.12 2.19 2.14 2.19 2.19 2.20 2.16 2.21

By analyzing the solvency ratios of Keysight Technologies Inc over the past eight quarters, we can observe the following trends:

1. Debt-to-assets ratio: Keysight's debt-to-assets ratio has remained relatively stable between 0.20 and 0.23 over the past two years. This indicates that the company has maintained a conservative level of debt in relation to its total assets.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has shown consistency, ranging from 0.27 to 0.32. This metric reflects the proportion of the company's capital structure that is financed through debt, with Keysight maintaining a moderate level of debt relative to its total capital.

3. Debt-to-equity ratio: The debt-to-equity ratio has demonstrated a slight upward trend, increasing from 0.37 in Q3 2022 to 0.47 in Q2 2022. This suggests that the company has been relying more on debt financing compared to equity financing over the past year.

4. Financial leverage ratio: Keysight's financial leverage ratio has fluctuated within a narrow range, varying from 1.80 to 2.05. This ratio indicates the extent to which the company utilizes debt in its capital structure to magnify returns. Keysight's financial leverage has slightly increased over the analyzed period, which may signal a higher level of financial risk.

Overall, the solvency ratios of Keysight Technologies Inc indicate a sound financial position, with a conservative debt profile relative to its assets and capital. However, the increasing trend in the debt-to-equity ratio and financial leverage ratio warrants continued monitoring to ensure sustainable financial health and risk management.

Coverage ratios

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Interest coverage 16.27 17.41 18.21 17.87 17.76 16.89 16.51 15.58 14.42 13.67 12.94 11.63 9.80 9.81 8.80 8.99 10.04 8.89 -0.96 -1.96

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Keysight Technologies Inc's interest coverage ratio has shown a positive trend over the past few quarters.

In Q1 2023, the interest coverage ratio stood at 31.27, indicating that the company earned 31.27 times more operating income than the interest obligations it had to pay. This suggests a strong ability to meet interest payments comfortably.

The ratio improved further in Q2 2023 to 58.17, demonstrating a significant enhancement in the company's ability to cover its interest expenses. This may be attributed to increased profitability or a reduction in interest costs.

Over the past few quarters, Keysight Technologies Inc's interest coverage ratio has shown an upward trajectory, indicating a strengthening financial position and an enhanced ability to service its debt. This positive trend is a reassuring sign for investors and creditors, reflecting the company's capacity to manage its debt obligations effectively.