MaxLinear Inc (MXL)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.11 | 0.10 | 0.29 | 0.36 | 0.29 |
| Debt-to-capital ratio | 0.15 | 0.15 | 0.38 | 0.48 | 0.33 |
| Debt-to-equity ratio | 0.18 | 0.18 | 0.63 | 0.93 | 0.50 |
| Financial leverage ratio | 1.57 | 1.74 | 2.15 | 2.61 | 1.70 |
The solvency ratios of MaxLinear Inc indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing. The debt-to-assets ratio has decreased from 0.29 in 2021 to 0.11 in 2023, indicating a significant reduction in the proportion of assets financed by debt. This suggests improved financial stability and a stronger ability to cover potential liabilities with company assets.
Similarly, the debt-to-capital ratio remained constant at 0.15 from 2022 to 2023, indicating a consistent proportion of capital financed by debt. The stability in this ratio suggests that the company is maintaining a balanced capital structure without significantly increasing reliance on debt financing.
The debt-to-equity ratio decreased from 0.63 in 2021 to 0.18 in 2023, reflecting a notable decrease in the reliance on equity financing. This trend suggests a more favorable mix of debt and equity in the company's capital structure, potentially reducing financial risk.
The financial leverage ratio has decreased from 2.61 in 2020 to 1.57 in 2023, indicating a declining proportion of assets financed by debt compared to equity. This trend signifies a more conservative approach to leverage, reducing the risk of financial distress.
Overall, the solvency ratios of MaxLinear Inc demonstrate a positive trend, indicating improved financial health, reduced reliance on debt, and a more sustainable capital structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -4.96 | 18.83 | 4.68 | -7.87 | -1.92 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. A higher interest coverage ratio indicates a greater ability to cover interest expenses.
MaxLinear Inc's interest coverage ratio has fluctuated significantly over the past five years. In 2023, the company's interest coverage ratio was negative, indicating that its earnings were insufficient to cover its interest expenses. This is a concerning sign for creditors and potential investors.
However, in 2022, the interest coverage ratio improved significantly to 19.46, indicating a strong ability to cover interest expenses with earnings. This improvement suggests better financial performance and reduced financial risk for the company.
In 2021, the interest coverage ratio also showed a positive trend at 5.22, indicating an improvement in the company's ability to cover its interest obligations compared to previous years.
Conversely, the years 2020 and 2019 saw negative interest coverage ratios, indicating that the company's earnings were insufficient to cover its interest expenses, which may be a cause for concern regarding its financial stability.
Overall, the fluctuation in MaxLinear Inc's interest coverage ratio over the years suggests inconsistency in its ability to cover interest expenses with its earnings, and investors and creditors should carefully assess the company's financial health and risk profile before making any decisions.