MACOM Technology Solutions Holdings Inc (MTSI)

Solvency ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.26 0.26 0.27 0.27 0.29 0.27 0.35 0.36 0.36 0.42 0.44 0.45 0.43 0.44 0.46 0.56 0.57 0.58 0.59 0.58
Debt-to-capital ratio 0.28 0.29 0.30 0.30 0.32 0.33 0.39 0.40 0.40 0.49 0.50 0.52 0.51 0.52 0.54 0.66 0.68 0.70 0.70 0.69
Debt-to-equity ratio 0.40 0.41 0.43 0.44 0.47 0.49 0.63 0.66 0.67 0.95 1.02 1.08 1.04 1.09 1.19 1.98 2.17 2.39 2.29 2.23
Financial leverage ratio 1.56 1.58 1.60 1.61 1.64 1.80 1.81 1.84 1.87 2.24 2.32 2.40 2.40 2.47 2.59 3.50 3.82 4.10 3.89 3.86

The solvency ratios of MACOM Technology Solutions Holdings Inc indicate the company's ability to meet its long-term financial obligations.

The Debt-to-assets ratio has remained relatively stable over the periods, ranging from 0.26 to 0.59. This ratio shows the proportion of the company's assets financed by debt, and a lower ratio is generally favorable as it suggests lower financial risk.

The Debt-to-capital and Debt-to-equity ratios have also shown consistency in trends, increasing gradually over time. These ratios indicate the extent to which the company's operations are funded by debt or equity. The increasing ratios suggest a higher level of leverage and financial risk, particularly evident in the Debt-to-equity ratio, which shows rising levels of debt relative to shareholder equity.

The Financial leverage ratio, reflecting the company's total debt relative to its equity, has shown an increasing trend, indicating higher financial leverage and potential risk. This ratio has more than doubled over the periods, signifying an increasing reliance on debt financing compared to equity.

Overall, while the Debt-to-assets ratio remains relatively stable, the Debt-to-capital, Debt-to-equity, and Financial leverage ratios demonstrate an increasing level of financial risk and dependency on debt financing for MACOM Technology Solutions Holdings Inc. Investors and stakeholders should monitor these ratios closely to assess the company's solvency and financial health.

Coverage ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage 14.34 8.01 6.77 8.76 12.75 14.45 19.69 19.88 29.44 21.71 14.22 11.07 2.95 3.04 1.13 0.03 -0.52 -1.86 -10.52 -11.00

Interest coverage ratio measures a company's ability to pay interest on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations. Looking at the historical trend of MACOM Technology Solutions Holdings Inc's interest coverage ratio, we observe fluctuations over the periods.

From Sep 30, 2024, to Mar 31, 2024, the interest coverage ratio decreased gradually from 14.34 to 6.77, indicating a declining ability to cover interest expenses. However, from Mar 31, 2024, to Dec 31, 2022, the ratio increased notably from 6.77 to 29.44, reflecting significant improvement in the company's ability to cover interest costs.

The interest coverage ratio reached its peak at 29.44 on Sep 30, 2022, suggesting a strong ability to handle interest payments. Subsequently, there was a decline in the ratio until Dec 31, 2021, reaching 2.95, indicating a decrease in the company's ability to cover interest expenses efficiently during this period.

From Jun 30, 2021, to Dec 31, 2019, the interest coverage ratio remained below 1, indicating that the company's earnings were insufficient to cover its interest payments. This may raise concerns about the firm's ability to service its debt obligations during these periods.

Overall, the fluctuating trend in MACOM Technology Solutions Holdings Inc's interest coverage ratio suggests varying levels of financial health and ability to service debt over the analyzed periods. It is essential for investors and stakeholders to monitor these trends closely to assess the company's financial stability and debt repayment capabilities.