Qorvo Inc (QRVO)

Qorvo Inc's solvency ratios indicate a very strong financial position with consistently low levels of debt relative to assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have remained at 0.00 throughout the five-year period from March 31, 2021, to March 31, 2025. This suggests that the company has no significant debt obligations in relation to its total assets, capital structure, or shareholders' equity.

The financial leverage ratio, which provides insight into the proportion of a company's assets financed by debt, has shown slight fluctuations over the period but has generally remained at reasonable levels. The ratio ranged from 1.56 in 2021 to 1.84 in 2024, showing that the company's financial leverage has stayed within acceptable limits and has not substantially increased over the years.

Overall, Qorvo Inc's solvency ratios reflect a conservative financial strategy that prioritizes a strong balance sheet and minimal reliance on debt financing. This prudent approach indicates stability and resilience in the face of economic challenges, ensuring the company's ability to meet its financial obligations and sustain long-term growth.

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Coverage ratios

The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. Looking at the data provided for Qorvo Inc over the past five years from March 31, 2021, to March 31, 2025, we observe fluctuations in the interest coverage ratio.

In March 31, 2021, Qorvo Inc had an interest coverage ratio of 11.74, indicating that the company's operating income was 11.74 times greater than its interest expense during that period. This suggests a strong ability to cover its interest payments with its earnings.

The ratio improved significantly to 19.65 by March 31, 2022, demonstrating a further strengthening of the company's ability to meet its interest obligations through its operational performance.

However, there was a notable decline in the interest coverage ratio to 2.82 by March 31, 2023, and a further decrease to 2.06 by March 31, 2024. These reductions may raise concerns about Qorvo Inc's ability to comfortably meet its interest payments with its operating income during these years.

The situation worsened significantly by March 31, 2025, with the interest coverage ratio falling to -0.16. A negative interest coverage ratio indicates that the company's operating income is insufficient to cover its interest expenses, raising serious concerns about its financial health and ability to manage debt obligations.

Overall, the fluctuating trend in Qorvo Inc's interest coverage ratio over the past five years highlights the importance of monitoring the company's financial performance and debt management practices to ensure sustainability and financial stability in the long term.