Qualcomm Incorporated (QCOM)
Solvency ratios
| Sep 30, 2024 | Jun 23, 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 | 0.24 | 0.26 | 0.28 | 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 |
| Debt-to-capital ratio | 0.34 | 0.36 | 0.38 | 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 |
| Debt-to-equity ratio | 0.51 | 0.56 | 0.60 | 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 |
| Financial leverage ratio | 2.10 | 2.14 | 2.17 | 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 |
Qualcomm Incorporated's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has fluctuated around 0.28 to 0.30 in recent quarters, showing that the company finances about 28-30% of its assets through debt. The trend has been relatively stable.
The debt-to-capital ratio has shown a slight upward trend, reaching 0.40 to 0.45 range, indicating that debt accounts for about 40-45% of the company's capital structure. This may suggest an increasing reliance on debt financing.
The debt-to-equity ratio has experienced significant fluctuations, from around 0.51 to 0.85 in recent quarters. This ratio means that for each dollar of equity, Qualcomm has 51-85 cents in debt. The observed upward trend may signal increasing financial leverage and potential higher financial risk.
The financial leverage ratio has also exhibited an increasing trend, rising from around 2.10 to 5.86 in recent quarters. This indicates that Qualcomm's level of financial leverage has been steadily increasing, with each dollar of equity supporting a higher level of debt.
Overall, Qualcomm's solvency ratios suggest a mix of debt and equity financing, with increasing reliance on debt over time. Investors and stakeholders may need to monitor the company's leverage levels closely to assess its long-term financial stability and risk profile.
Coverage ratios
| Sep 30, 2024 | Jun 23, 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 | 15.85 | 14.09 | 13.34 | 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 |
Qualcomm Incorporated's interest coverage ratio has shown fluctuating trends over the periods presented. The interest coverage ratio indicates the company's ability to meet its interest payments on outstanding debt from its operating income. A higher interest coverage ratio generally signifies a stronger ability to fulfill interest obligations.
From December 2019 to September 2022, Qualcomm's interest coverage ratio consistently stayed above 10, indicating a solid ability to cover interest payments comfortably. The ratio peaked at 31.60 in September 2022, reflecting robust earnings relative to interest expenses during that period.
However, there was a downward trend in the interest coverage ratio from September 2022 to March 2023. Despite this decline, the ratio remained above 10, suggesting the company's earnings continued to exceed its interest expenses.
The interest coverage ratio spiked to 22.08 in June 2023 before reaching a high of 26.70 in September 2023, indicating a significant increase in earnings relative to interest obligations during that period.
In more recent periods, the interest coverage ratio has shown some volatility, with values ranging from 10.48 to 15.85. While the ratio has remained above 10, indicating that Qualcomm's operating income continues to comfortably cover its interest expenses, the fluctuations may warrant further monitoring to assess the company's ongoing ability to meet its debt obligations.
Overall, Qualcomm's interest coverage ratio reflects a generally healthy financial position with the ability to manage interest expenses effectively, although stakeholders should continue to monitor changes in the ratio to gauge the company's financial stability.