MaxLinear Inc (MXL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.11 | 0.10 | 0.29 | 0.36 |
| Debt-to-capital ratio | 0.19 | 0.15 | 0.15 | 0.38 | 0.48 |
| Debt-to-equity ratio | 0.24 | 0.18 | 0.18 | 0.63 | 0.93 |
| Financial leverage ratio | 1.67 | 1.57 | 1.74 | 2.15 | 2.61 |
MaxLinear Inc has shown a consistent improvement in its solvency ratios over the years, indicating a strong financial position and ability to meet its long-term obligations.
The Debt-to-assets ratio has declined from 0.36 in 2020 to 0.14 in 2024, suggesting that the company has reduced its reliance on debt to finance its assets.
Similarly, the Debt-to-capital ratio has decreased from 0.48 in 2020 to 0.19 in 2024, reflecting a lower proportion of debt in the company's overall capital structure.
The Debt-to-equity ratio has shown a notable decline from 0.93 in 2020 to 0.24 in 2024, indicating a decreasing dependence on debt funding relative to equity.
Moreover, the Financial leverage ratio has consistently decreased from 2.61 in 2020 to 1.67 in 2024, signifying a reduction in the company's overall financial leverage.
Overall, these improving solvency ratios suggest that MaxLinear Inc has enhanced its financial stability and reduced its debt burden over the years, which is a positive indicator for investors and creditors.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -20.54 | -4.96 | 18.83 | 4.68 | -7.87 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest payments, while a lower ratio raises concerns about the company's financial health.
In the case of MaxLinear Inc, the interest coverage ratio has fluctuated significantly over the years. In 2020, the ratio was negative at -7.87, indicating that the company's operating income was insufficient to cover its interest expenses, which may signal financial distress.
By the end of 2021, the interest coverage ratio improved to 4.68, suggesting that the company's operating income was able to cover its interest payments about 4.68 times. This improvement is a positive sign for the company's financial stability.
The ratio increased further in 2022 to 18.83, indicating a significant improvement in the company's ability to cover its interest expenses with operating income. This suggests a healthier financial position for MaxLinear Inc in that year.
However, in 2023, the interest coverage ratio dropped back into negative territory at -4.96, raising concerns about the company's ability to meet its interest obligations with its operating income.
By the end of 2024, the ratio deteriorated significantly to -20.54, indicating a substantial decline in the company's ability to cover its interest expenses with operating income and suggesting potential financial difficulties.
Overall, the fluctuating trend in MaxLinear Inc's interest coverage ratio highlights the importance of monitoring the company's financial performance and its ability to manage its debt obligations effectively.