Qualcomm Incorporated (QCOM)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.24 | 0.28 | 0.28 | 0.33 | 0.43 |
| Debt-to-capital ratio | 0.34 | 0.40 | 0.43 | 0.58 | 0.71 |
| Debt-to-equity ratio | 0.51 | 0.67 | 0.75 | 1.38 | 2.51 |
| Financial leverage ratio | 2.10 | 2.37 | 2.72 | 4.14 | 5.86 |
The solvency ratios of Qualcomm Incorporated show a positive trend over the past five years. The debt-to-assets ratio has decreased steadily from 0.43 in 2020 to 0.24 in 2024, indicating that Qualcomm has been able to lower its reliance on debt to fund its assets. This suggests a stronger financial position in terms of asset coverage by debt.
Similarly, the debt-to-capital ratio has shown a consistent decline from 0.71 in 2020 to 0.34 in 2024, indicating that Qualcomm has been able to reduce its debt in relation to its capital structure. This implies a more balanced mix of debt and equity in funding the company's operations.
The debt-to-equity ratio has also improved significantly over the same period, decreasing from 2.51 in 2020 to 0.51 in 2024. This indicates that Qualcomm has reduced its reliance on debt financing in comparison to equity, which is a positive sign for investors and creditors.
Finally, the financial leverage ratio has shown a consistent decline from 5.86 in 2020 to 2.10 in 2024. This signifies that Qualcomm has been able to reduce its financial leverage over time, which may reduce the company's financial risk and enhance its ability to meet its financial obligations.
Overall, the solvency ratios of Qualcomm Incorporated demonstrate a positive trend, reflecting an improved financial health and a stronger balance sheet position over the past five years.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 15.88 | 11.57 | 31.51 | 19.38 | 10.50 |
Interest coverage is a key financial ratio that indicates a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio is generally preferred, as it suggests a company is more capable of meeting its interest obligations.
In the case of Qualcomm Incorporated, the interest coverage ratio has fluctuated over the past five years. In 2024, the interest coverage ratio was 15.88, an increase from the previous year's 11.57. This indicates that Qualcomm's ability to cover its interest expenses improved in 2024.
Looking at the trend over the five-year period, Qualcomm's interest coverage ratio reached a peak in 2022 at 31.51, signifying a strong ability to cover interest payments. However, the ratio decreased in 2023 and 2024, although it still remained at levels indicating a healthy interest coverage.
Overall, Qualcomm's interest coverage ratio has shown fluctuations over the years but has generally been at levels indicating a strong ability to meet interest obligations. It is essential for investors and stakeholders to monitor this ratio to assess Qualcomm's financial health and its capacity to service its debt.