Micron Technology Inc (MU)
Solvency ratios
| Aug 31, 2024 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Aug 31, 2022 | |
|---|---|---|---|---|---|
| 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 | 1.54 | 1.54 | 1.46 | 1.33 | 1.33 |
Based on the solvency ratios provided for Micron Technology Inc, it is evident that the company has maintained a strong financial position with consistently low debt ratios over the years.
The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been reported as 0.00 for each of the years analyzed (2022, 2023, and 2024). This indicates that the company has either minimal or no debt in relation to its assets, capital, and equity, suggesting a favorable solvency position.
Furthermore, the financial leverage ratio has slightly increased from 1.33 in 2022 to 1.54 in 2024. This ratio measures the extent to which the company relies on debt financing, and the gradual increase could indicate a slightly higher level of leverage over time.
Overall, based on the solvency ratios provided, Micron Technology Inc appears to have a strong financial structure with low levels of debt relative to its assets, capital, and equity. The gradual increase in the financial leverage ratio suggests a slight increase in reliance on debt, but the overall solvency position remains robust.
Coverage ratios
| Aug 31, 2024 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Aug 31, 2022 | |
|---|---|---|---|---|---|
| Interest coverage | 3.21 | 5.80 | -13.58 | 51.66 | 51.64 |
The interest coverage ratio for Micron Technology Inc has shown significant fluctuations over the past few years. As of August 31, 2022, and September 1, 2022, the interest coverage was relatively strong at approximately 51.64 and 51.66, respectively, indicating the company's ability to meet its interest obligations comfortably.
However, there was a notable decline in the interest coverage ratio to -13.58 as of August 31, 2023, which suggests that the company's earnings were insufficient to cover its interest expenses during that period. This negative ratio raises concerns about the company's financial health and ability to service its debt effectively.
Subsequently, there was a slight improvement in the interest coverage ratio to 5.80 on August 29, 2024, and further dropped to 3.21 by August 31, 2024. Although these figures show some recovery from the negative ratio in 2023, the ratios remain relatively low compared to previous years.
In conclusion, while the interest coverage ratio for Micron Technology Inc has displayed variability, the negative ratio in 2023 is a point of caution, indicating potential challenges in meeting interest obligations. Investors and stakeholders should closely monitor the company's financial performance and debt management strategies moving forward.