Micron Technology Inc (MU)
Solvency ratios
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 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 | 1.54 | 1.46 | 1.33 | 1.34 | 1.38 |
The solvency ratios of Micron Technology Inc, as indicated by the debt-to-assets, debt-to-capital, and debt-to-equity ratios, have consistently remained at 0.00 over the past five years, suggesting that the company has not relied heavily on debt to finance its operations and investments relative to its total assets, capital, and equity.
However, the financial leverage ratio has fluctuated over the same period, indicating changes in the proportion of debt in the company's capital structure. The ratio increased from 1.34 in 2021 to 1.54 in 2024, showing a higher level of financial leverage compared to equity. Despite the increase, the financial leverage ratio remains relatively low, which may indicate a manageable level of debt in relation to the company's overall financial structure.
Overall, based on the solvency ratios analyzed, Micron Technology Inc appears to have a conservative approach to debt management and maintains a strong financial position with a low reliance on debt financing.
Coverage ratios
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.80 | -13.58 | 51.66 | 35.18 | 16.29 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
In the case of Micron Technology Inc, the interest coverage ratio has varied significantly over the past five years. As of August 29, 2024, the company's interest coverage ratio is 5.80, indicating that it earned 5.80 times more operating income than the interest expense incurred during that period, reflecting a relatively healthy ability to cover its interest obligations.
Looking back over the previous years, there was a significant decline in interest coverage in August 31, 2023, where the ratio was -13.58, signaling that the company's operating income was insufficient to cover its interest expenses, resulting in a negative coverage ratio. This could raise concerns about the company's financial health and its ability to meet debt obligations.
Conversely, in September 1, 2022, Micron Technology Inc exhibited a very strong interest coverage ratio of 51.66, indicating a robust ability to cover interest payments, which may indicate strong financial performance and stability during that period.
Overall, the fluctuating trend in Micron Technology Inc's interest coverage ratios over the past five years suggests varying levels of financial health and performance. It is essential for investors and stakeholders to consider these fluctuations when assessing the company's financial stability and ability to meet its debt obligations.