NXP Semiconductors NV (NXPI)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.82 | 2.83 | 2.91 | 2.99 | 3.12 | 3.23 | 3.24 | 3.28 | 3.20 | 2.97 | 2.77 | 2.34 | 2.22 | 2.38 | 2.38 | 2.16 | 2.12 | 2.26 | 2.05 |
The solvency ratios of NXP Semiconductors NV provide valuable insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. NXP's debt-to-assets ratio has been relatively stable around 0.46 to 0.50 over the past eight quarters, indicating that, on average, approximately 46% to 50% of the company's assets are funded by debt.
2. Debt-to-capital ratio: This ratio reflects the percentage of the company's capital structure that is comprised of debt. NXP's debt-to-capital ratio has ranged from 0.56 to 0.62 over the same period, suggesting that debt accounts for around 56% to 62% of the company's total capitalization.
3. Debt-to-equity ratio: The debt-to-equity ratio highlights the proportion of the company's financing that comes from debt compared to equity. NXP's debt-to-equity ratio has increased from 1.29 to 1.62 over the past eight quarters, indicating a rise in reliance on debt financing compared to equity.
4. Financial leverage ratio: This ratio measures the company's total debt in relation to its equity. NXP's financial leverage ratio has shown an upward trend, increasing from 2.82 to 3.28 over the analyzed period, signifying a higher level of debt in comparison to equity, which may pose higher financial risk.
Overall, NXP Semiconductors NV has maintained a stable debt-to-assets and debt-to-capital ratio, but has seen an increase in its debt-to-equity ratio and financial leverage ratio over the period. This suggests that the company's financial risk has been on the rise due to a greater reliance on debt for financing its operations. Investors and stakeholders should closely monitor these solvency ratios to assess NXP's long-term financial health and risk profile.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.58 | 8.68 | 8.63 | 8.55 | 8.77 | 8.08 | 7.63 | 7.03 | 6.29 | 5.97 | 4.00 | 2.04 | 0.91 | 0.33 | 0.91 | 1.99 |
The interest coverage ratio of NXP Semiconductors NV has shown a consistent positive trend over the past eight quarters, indicating the company's ability to cover its interest expenses with its operating income. The ratio has improved from 7.81 in Q1 2022 to 14.62 in Q4 2023, reflecting a significant increase in the company's ability to meet its interest obligations.
This steady improvement in the interest coverage ratio suggests that NXP Semiconductors NV has been generating more operating income relative to its interest expenses, which is a positive sign of financial health and stability. The company's ability to consistently cover its interest payments over the quarters indicates a lower financial risk of default and a stronger ability to service its debt obligations.
Overall, the increasing trend in NXP Semiconductors NV's interest coverage ratio reflects a favorable financial position and indicates effective management of the company's capital structure and financial leverage.