NXP Semiconductors NV (NXPI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 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 | 2.66 | 2.82 | 3.12 | 3.20 | 2.22 |
NXP Semiconductors NV demonstrates a strong solvency position based on the provided solvency ratios.
1. Debt-to-assets ratio: The debt-to-assets ratio indicates the proportion of a company's assets that are financed by debt. NXP Semiconductors NV shows a consistent debt-to-assets ratio of 0.00 across the years 2020 to 2024. This suggests that the company's total debt is negligible compared to its total assets, reflecting a low financial risk related to asset coverage.
2. Debt-to-capital ratio: The debt-to-capital ratio measures the extent to which a company is reliant on borrowed funds compared to its total capital. NXP Semiconductors NV maintains a debt-to-capital ratio of 0.00 over the five-year period. This implies that the company's capital structure is not significantly leveraged by debt, indicating a conservative financial approach.
3. Debt-to-equity ratio: The debt-to-equity ratio evaluates the proportion of a company's financing that comes from debt compared to equity. NXP Semiconductors NV consistently reports a debt-to-equity ratio of 0.00 from 2020 to 2024. This signifies that the company relies primarily on equity financing rather than debt to support its operations.
4. Financial leverage ratio: The financial leverage ratio indicates the extent to which a company utilizes debt to finance its operations and investments. NXP Semiconductors NV's financial leverage ratio shows a decreasing trend from 3.20 in 2021 to 2.66 in 2024. Despite the decrease, these ratios are relatively low, suggesting that the company has a moderate level of financial leverage and is not overly reliant on debt to drive its growth.
Overall, NXP Semiconductors NV's solvency ratios highlight a financially stable and conservative approach to managing its capital structure, with a minimal reliance on debt for financing its operations. This indicates a strong solvency position and lower financial risk for the company.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.79 | 8.65 | 8.88 | 6.91 | 1.00 |
The interest coverage ratio for NXP Semiconductors NV has shown a positive trend over the years, indicating the company's improving ability to cover its interest expenses with its earnings.
In December 31, 2020, the interest coverage ratio was at a concerning level of 1.00, which suggests that the company's operating income just covered its interest expenses. However, in the following year, the ratio significantly improved to 6.91, indicating a stronger financial position and better ability to meet its interest obligations.
Subsequently, the interest coverage ratio continued to increase, reaching 8.88 by December 31, 2022, 8.65 by December 31, 2023, and 8.79 by December 31, 2024. These figures reflect a robust financial performance by NXP Semiconductors NV, with a comfortable buffer to handle its interest payments.
Overall, the positive trend in the interest coverage ratio indicates that NXP Semiconductors NV has been efficiently managing its interest expenses relative to its operating income, portraying a healthier financial position and reduced risk of default on its debt obligations.