Impinj Inc (PI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.78 | 0.80 | 0.88 | 0.26 |
| Debt-to-capital ratio | 0.00 | 0.89 | 0.95 | 1.04 | 0.33 |
| Debt-to-equity ratio | 0.00 | 8.26 | 17.97 | — | 0.50 |
| Financial leverage ratio | 3.26 | 10.53 | 22.43 | — | 1.90 |
Impinj Inc's solvency ratios provide insights into the company's ability to meet its financial obligations in the long term.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. The trend for Impinj shows an increase from 0.26 in 2020 to 0.78 in 2023 before dropping to 0.00 in 2024. This indicates a fluctuation in the company's reliance on debt to fund its assets.
2. Debt-to-capital ratio: This ratio measures the percentage of a company's capital that is financed by debt. Impinj's ratio increased from 0.33 in 2020 to 1.04 in 2021 before declining to 0.89 in 2023 and dropping to 0.00 in 2024. The company's capital structure has shown variability over the years.
3. Debt-to-equity ratio: This ratio compares a company's total debt to its total equity. Impinj's ratio was 0.50 in 2020, suggesting a balanced mix of debt and equity. However, the ratio spiked to 17.97 in 2022, indicating a significant increase in debt compared to equity, before decreasing to 8.26 in 2023 and reaching 0.00 in 2024. The sharp fluctuations indicate changes in the company's financial leverage.
4. Financial leverage ratio: This ratio evaluates how much debt a company uses to finance its assets relative to its equity. Impinj's financial leverage ratio was 1.90 in 2020, indicating moderate financial leverage. The ratio dramatically increased to 22.43 in 2022, signaling substantial reliance on debt, before decreasing to 3.26 in 2024. These fluctuations highlight changes in the company's risk and financial structure.
Overall, Impinj Inc's solvency ratios demonstrate fluctuations in the company's debt levels and financial structure over the years, reflecting changes in its long-term financial stability and risk profile.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.41 | -8.01 | -3.90 | -19.04 | -8.58 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses. Based on the data provided, we observe that Impinj Inc's interest coverage ratio has fluctuated significantly over the past five years:
- December 31, 2020: The interest coverage ratio was -8.58, indicating that the company's operating income was not sufficient to cover its interest expenses.
- December 31, 2021: The ratio deteriorated further to -19.04, suggesting a substantial decline in the company's ability to meet its interest obligations.
- December 31, 2022: The interest coverage ratio improved slightly to -3.90, but still remained in negative territory, indicating ongoing challenges in servicing debt.
- December 31, 2023: The ratio decreased to -8.01, reflecting continued pressure on Impinj Inc's ability to cover interest costs.
- December 31, 2024: There was a notable improvement as the interest coverage ratio increased to 9.41, indicating a positive development and a significant enhancement in the company's ability to meet its interest payments.
Overall, the trend in Impinj Inc's interest coverage ratio over the period highlights fluctuations and challenges in managing interest expenses, with notable improvement in 2024. It is essential for the company to sustain this positive momentum and ensure sufficient earnings to comfortably cover its interest obligations in the future.