PTC Inc (PTC)
Solvency ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.99 | 2.03 | 2.11 | 2.23 | 2.35 | 2.39 | 2.50 | 2.00 | 2.04 | 2.13 | 2.10 | 2.26 | 2.21 | 2.44 | 2.53 | 2.31 | 2.35 | 2.54 | 3.03 | 2.63 |
The solvency ratios of PTC Inc, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, have consistently remained at 0.00 over the periods provided. This suggests that the company has not utilized debt to finance its assets, operations, or equity, indicating a conservative capital structure.
However, the financial leverage ratio has fluctuated over time, with values ranging from 1.99 to 3.03. This ratio measures the extent to which the company is utilizing debt to finance its operations relative to equity. The increasing trend in the financial leverage ratio indicates that PTC Inc has been increasingly relying on debt financing compared to equity financing, which could potentially increase financial risk and impact the company's solvency in the long run.
Overall, while the debt-related ratios show conservative financial management practices, the increasing trend in the financial leverage ratio warrants scrutiny to ensure that the company's financial structure remains sustainable and within manageable levels of leverage.
Coverage ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.92 | 3.97 | 3.86 | 3.24 | 3.57 | 4.50 | 5.67 | 8.43 | 8.32 | 9.28 | 8.55 | 8.12 | 8.76 | 6.59 | 5.70 | 3.55 | 2.76 | 2.51 | 2.03 | 1.42 |
Interest coverage ratio is a financial metric used to assess a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations with its earnings.
In the case of PTC Inc, we observe fluctuations in the interest coverage ratio over the past several quarters. The interest coverage ratio has ranged from a low of 1.42 in December 2019 to a high of 9.28 in June 2022. Generally, a ratio above 2 is considered acceptable, as it suggests the company is generating sufficient earnings to cover its interest expenses.
PTC Inc's interest coverage ratio has shown a declining trend in recent quarters, possibly indicating that the company's ability to cover its interest payments with operating income has weakened. It is crucial for investors and creditors to monitor this trend closely, as a declining interest coverage ratio may signal financial distress or a higher risk of default on debt obligations.
Overall, while PTC Inc has maintained an interest coverage ratio above 2 in most periods, the recent decline warrants further investigation to understand the underlying reasons and assess the company's financial health and sustainability in meeting its debt obligations.