PTC Inc (PTC)

Based on the solvency ratios of PTC Inc presented in the table, we can observe the following trends:

1. Debt-to-assets ratio: The debt-to-assets ratio for PTC Inc has consistently remained at 0.00 over the past five years. This indicates that the company has not utilized debt financing to fund its assets during this period.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 for the same period. This further confirms that PTC Inc has not relied on debt to finance its operations relative to its capital structure.

3. Debt-to-equity ratio: The debt-to-equity ratio has consistently stood at 0.00 over the past five years. This implies that the company has not resorted to debt financing in relation to its equity base during this period.

4. Financial leverage ratio: The financial leverage ratio of PTC Inc has shown some fluctuations over the years, with a peak of 2.35 in 2020 and a decrease to 1.99 in 2024. This ratio indicates the proportion of the company's total assets that are financed by debt, with values above 1 suggesting higher dependency on debt financing.

Overall, the solvency analysis of PTC Inc reveals a stable and conservative approach towards debt utilization, as evidenced by consistently low debt ratios and a gradually declining financial leverage ratio. This indicates that the company has maintained a strong solvency position and has managed its debt levels effectively over the past five years.

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Coverage ratios

PTC Inc's interest coverage ratio has demonstrated fluctuations over the past five years. In particular, the interest coverage ratio stood at 4.92 in September 2024, indicating that the company's operating income was nearly 4.92 times higher than its interest expenses for the period. This marks an improvement from the previous year, where the interest coverage ratio was 3.57. The company experienced a significant decline in interest coverage in September 2020, with a ratio of 2.76, suggesting weaker ability to cover interest expenses with operating income during that period.

Overall, PTC Inc's interest coverage has shown variability, with higher ratios in 2022 and 2021, indicating a stronger capacity to meet interest obligations, whereas lower ratios in 2020 and 2023 suggest a relatively weaker position in those years. It is essential for investors and stakeholders to closely monitor the interest coverage ratio to assess the company's ability to service its debts effectively and sustainably over time.