NXP Semiconductors NV (NXPI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.82 | 3.12 | 3.20 | 2.22 | 2.12 |
NXP Semiconductors NV's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has been decreasing over the past five years, indicating that NXP Semiconductors NV's level of debt relative to its total assets has been improving. This suggests that the company has been managing its debt levels more effectively in relation to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also shown a declining trend over the same period. A lower debt-to-capital ratio indicates that the company relies less on debt financing relative to its total capital structure. Meanwhile, a decreasing debt-to-equity ratio signifies that the company has been reducing its reliance on debt in relation to shareholder equity.
In contrast, the financial leverage ratio, which measures the extent to which the company's operations are funded by debt, has been fluctuating but generally trending downward. This suggests that NXP Semiconductors NV has been diversifying its sources of financing and reducing its financial leverage over time.
Overall, the decreasing trend in these solvency ratios over the past five years indicates an improving solvency position for NXP Semiconductors NV, as the company has been effectively managing its debt levels and leveraging its capital structure more efficiently.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.58 | 8.77 | 6.81 | 0.91 | 1.71 |
The interest coverage ratio of NXP Semiconductors NV has demonstrated an increasing trend over the past five years, reflecting the company's improving ability to meet its interest obligations from its operating income.
In particular, the interest coverage ratio has improved from 1.97 in 2019 to 14.62 in 2023, indicating a significant enhancement in the company's capacity to cover its interest expenses. This trend suggests that NXP Semiconductors NV has been effectively managing its debt and generating sufficient earnings to comfortably service its interest payments.
The substantial increase in the interest coverage ratio from 2020 to 2023 highlights a notable improvement in the company's financial health and reduced risk of default on its debt obligations. This positive trend indicates growing profitability and operational efficiency, indicating a stronger financial position for NXP Semiconductors NV.
Overall, the consistent upward trajectory of the interest coverage ratio underscores NXP Semiconductors NV's ability to handle its interest expenses and suggests a stable and healthy financial standing.