Littelfuse Inc (LFUS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.61 | 1.61 | 1.77 | 1.66 | 1.71 |
Littelfuse Inc's solvency ratios reflect a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 over the past five years, indicating that the company operates with minimal debt obligations compared to its resources.
Furthermore, the financial leverage ratio, which measures the extent of a company's financial leverage, has fluctuated slightly but remained within a reasonable range over the same period. This indicates that Littelfuse Inc has been able to finance its operations primarily through equity and retained earnings rather than relying heavily on debt financing.
Overall, the company's solvency ratios suggest a conservative financial strategy focused on maintaining a healthy balance sheet and relatively low financial risk. This bodes well for Littelfuse Inc's ability to weather economic downturns and pursue strategic growth opportunities in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.92 | 9.05 | 17.90 | 19.41 | 8.65 |
The interest coverage ratio for Littelfuse Inc has shown fluctuations over the years based on the data provided.
1. In December 2020, the interest coverage ratio was 8.65, indicating that the company was able to cover its interest expenses approximately 8.65 times with its operating income.
2. By December 2021, the interest coverage ratio improved significantly to 19.41, demonstrating a stronger ability to meet interest obligations from operating earnings.
3. The ratio remained relatively stable in December 2022 at 17.90, indicating continued strong coverage of interest payments using operating income.
4. However, by December 2023, the interest coverage ratio declined to 9.05, signaling a decrease in the company's ability to cover interest expenses compared to the previous year.
5. The trend continued to worsen by December 2024, with the interest coverage ratio dropping further to 4.92, indicating a significant decrease in the company's ability to cover interest costs with operating income.
Overall, it is important for Littelfuse Inc to closely monitor its interest coverage ratio to ensure it maintains a healthy level of financial flexibility and is able to meet its interest obligations comfortably in the future.