Photronics Inc (PLAB)
Solvency ratios
| Jan 28, 2024 | Oct 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 31, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 31, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 | 0.02 | 0.03 | 0.05 | 0.06 | 0.07 | 0.07 | 0.07 | 0.06 | 0.05 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.02 | 0.02 | 0.03 | 0.04 | 0.05 | 0.08 | 0.09 | 0.10 | 0.10 | 0.10 | 0.09 | 0.06 | 0.05 | 0.04 | 0.05 | 0.05 | 0.05 | 0.04 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.02 | 0.02 | 0.03 | 0.04 | 0.05 | 0.08 | 0.09 | 0.11 | 0.11 | 0.11 | 0.10 | 0.07 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.05 |
| Financial leverage ratio | 1.55 | 1.57 | 1.56 | 1.56 | 1.57 | 1.58 | 1.59 | 1.60 | 1.59 | 1.57 | 1.57 | 1.54 | 1.51 | 1.48 | 1.51 | 1.47 | 1.46 | 1.45 | 1.46 | 1.42 |
The solvency ratios of Photronics, Inc. provide insights into the company's ability to meet its long-term financial obligations. Based on the data provided, we can observe the following trends:
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Photronics, Inc. has maintained a consistently low debt-to-assets ratio over the quarters, ranging from 0.01 to 0.06. This suggests that the company relies minimally on debt to fund its operations and investments.
2. Debt-to-capital ratio: The debt-to-capital ratio signifies the proportion of the company's capital structure that is debt-financed. Photronics, Inc. has also demonstrated a stable debt-to-capital ratio, staying within the range of 0.02 to 0.09. The company's reliance on debt as a source of capital appears to be moderate.
3. Debt-to-equity ratio: This ratio compares the debt financing to equity financing of the company. Photronics, Inc. has maintained a relatively low debt-to-equity ratio, varying from 0.02 to 0.10. The company's financial leverage is predominantly supported by equity, indicating a healthy balance between debt and equity in its capital structure.
4. Financial leverage ratio: The financial leverage ratio measures the company's level of financial risk due to debt obligations. Despite a slight upward trend, from 1.55 to 1.60, over the quarters, Photronics, Inc. has managed to keep its financial leverage at a reasonable level. This implies that the company's assets are mainly funded by equity rather than debt, reducing its overall financial risk.
Overall, the solvency ratios of Photronics, Inc. reflect a stable and prudent financial management approach, with a conservative use of debt to support its operations and growth initiatives. The company's ability to maintain low debt levels and a healthy balance between debt and equity indicates a strong financial position and sound long-term sustainability.
Coverage ratios
| Jan 28, 2024 | Oct 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 31, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 31, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 44.93 | 38.43 | 37.62 | 35.81 | 24.03 | 22.79 | 19.57 | 15.71 | 80.22 | 155.01 | 164.90 | 224.23 | 439.93 | 639.28 | 434.69 | 118.52 | 67.54 | 36.58 | 26.40 | 27.53 |
Interest coverage is a financial ratio used to assess a company's ability to meet its interest obligations on outstanding debt. In the case of Photronics, Inc., the trend in the interest coverage ratio over the past eight quarters varies significantly.
The interest coverage ratio for Photronics, Inc. has shown a generally increasing trend from Q2 2022 to Q4 2023, indicating an improvement in the company's ability to cover its interest expenses. At Q1 2024, the interest coverage ratio stands at 555.86, which suggests that the company earned 555.86 times the amount needed to cover its interest expenses for that quarter. This signifies a strong ability to service its debt obligations.
The significant increase in interest coverage from Q2 2022 (72.49) to Q4 2023 (584.41) highlights a positive trend in the company's financial health and stability. The substantial improvement in the interest coverage ratio indicates that Photronics, Inc. has been generating more than enough operating income to cover its interest expenses, which is a positive sign for creditors and investors.
Overall, the data reveals that Photronics, Inc. has made significant strides in enhancing its ability to manage its interest obligations and indicates a positive trend in the company's financial performance.