NXP Semiconductors NV (NXPI)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | 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 | 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 | 0.00 |
| Financial leverage ratio | 2.56 | 2.52 | 2.57 | 2.64 | 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 |
NXP Semiconductors NV has consistently maintained a strong solvency position, as evidenced by its exceptionally low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 across the reporting periods provided. This indicates that the company has minimal debt relative to its total assets, capital structure, and equity, suggesting a low financial risk and high financial flexibility.
Furthermore, the financial leverage ratio, which measures the extent to which the company relies on debt financing, has displayed a stable trend over the years. The ratio has decreased gradually from 2.16 in March 2020 to 2.56 in December 2024, indicating a decreasing reliance on debt to finance its operations. This downward trend in the financial leverage ratio signifies that NXP Semiconductors NV has been managing its leverage effectively and improving its financial stability.
In conclusion, NXP Semiconductors NV's solvency ratios reflect a healthy financial position, with low debt levels and a decreasing reliance on debt financing over time, positioning the company well to weather financial challenges and pursue growth opportunities in the semiconductor industry.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | 8.92 | 10.04 | 9.70 | 9.42 | 9.12 | 8.66 | 8.65 | 8.71 | 8.92 | 8.81 | 8.33 | 7.74 | 7.07 | 6.08 | 4.12 | 2.12 | 0.99 | 0.41 | 0.99 | 2.04 |
The interest coverage ratio is a measure of a company's ability to cover interest expenses with its operating income. NXP Semiconductors NV's interest coverage has shown fluctuations over the periods provided in the data.
The interest coverage ratio for NXP Semiconductors NV in March 2020 was 2.04, indicating that the company generated 2.04 times the amount of operating income necessary to cover its interest expenses. However, this ratio decreased to 0.99 by June 2020 and fluctuated between 0.41 and 0.99 for the rest of 2020.
In the following year, NXP Semiconductors NV saw an improvement in its interest coverage ratio, with values increasing to 2.12 in March 2021, 4.12 in June 2021, and continuing to rise to 9.42 by March 2024. This upward trend suggests an improvement in the company's ability to meet its interest obligations comfortably.
Overall, NXP Semiconductors NV's interest coverage ratio has shown variability in the past, but has generally been on an upward trajectory in recent periods, indicating a stronger ability to cover interest expenses with operating income. It is essential for the company to maintain a healthy interest coverage ratio to demonstrate financial stability and ensure creditors' confidence in its ability to meet debt obligations.