Qualcomm Incorporated (QCOM)

Solvency ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.29 0.28 0.30 0.31 0.31 0.28 0.29 0.35 0.39 0.33 0.44 0.45 0.47 0.43 0.48 0.52 0.50 0.41 0.39 0.45
Debt-to-capital ratio 0.40 0.40 0.42 0.43 0.45 0.43 0.46 0.54 0.60 0.58 0.68 0.69 0.71 0.71 0.82 0.85 0.79 0.73 0.71 0.80
Debt-to-equity ratio 0.65 0.67 0.72 0.77 0.82 0.75 0.85 1.16 1.49 1.38 2.08 2.24 2.40 2.51 4.67 5.48 3.68 2.74 2.46 3.98
Financial leverage ratio 2.26 2.37 2.37 2.46 2.66 2.72 2.93 3.32 3.78 4.14 4.74 5.01 5.08 5.86 9.78 10.49 7.34 6.71 6.25 8.80

Qualcomm Incorporated's solvency ratios reflect its ability to meet its financial obligations in the long term.

The Debt-to-assets ratio has generally been decreasing over the past two years, indicating that Qualcomm has been relying less on debt to finance its assets. This suggests a lower risk of financial distress.

The Debt-to-capital ratio and Debt-to-equity ratio have shown some fluctuations but generally exhibit an increasing trend. This indicates that Qualcomm is using more debt in relation to its capital and equity, which could potentially increase financial risk. The higher the debt ratio, the larger the portion of Qualcomm's assets that is funded by debt, which can lead to higher interest payments and financial vulnerability.

The Financial leverage ratio has also been increasing steadily over the past two years, signifying that Qualcomm's reliance on debt to finance its operations has been growing. A high financial leverage ratio means that Qualcomm has a high level of debt relative to its equity, which can magnify both returns and losses. This indicates an increased financial risk for the company.

Overall, while the decreasing debt-to-assets ratio is a positive sign, the increasing Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio suggest that Qualcomm may be taking on more debt, potentially increasing its financial risk and leverage. It would be important for Qualcomm to carefully manage its debt levels and monitor its solvency ratios to ensure sustainable long-term financial health.

Coverage ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 12.28 11.57 15.23 22.08 26.70 31.44 31.60 24.24 21.75 19.41 18.57 16.07 13.38 10.48 6.16 13.68 13.69 12.91 9.86 3.03

Qualcomm Incorporated has shown a consistent and strong interest coverage ratio over the past few quarters, indicating the company's ability to meet its interest payment obligations comfortably. The interest coverage ratio has been above 10 in all reported periods, with a notable increase in recent quarters. This improving trend suggests that Qualcomm's operating income is more than sufficient to cover its interest expenses, providing a buffer against any potential financial distress related to debt servicing. The company's interest coverage ratio peaked at 31.60 in the second quarter of 2022 and has remained relatively stable since then, indicating a healthy financial position. Investors and stakeholders can take comfort in Qualcomm's robust ability to service its interest payments, reflecting positively on the company's financial stability and operational efficiency.

See also:

Qualcomm Incorporated Solvency Ratios (Quarterly Data)