Qorvo Inc (QRVO)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.31 | 0.27 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.34 | 0.31 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.52 | 0.45 | 0.00 | 0.00 |
| Financial leverage ratio | 1.84 | 1.71 | 1.65 | 1.56 | 1.53 |
The solvency ratios of Qorvo Inc indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.
The trend in the Debt-to-assets ratio shows a significant decrease from 0.31 in 2023 to 0.00 in 2024, indicating that the company relies less on debt to finance its assets. The Debt-to-capital ratio also decreased from 0.34 in 2023 to 0.00 in 2024, further supporting the reduction in reliance on debt for financing.
Similarly, the Debt-to-equity ratio shows a decline from 0.52 in 2023 to 0.00 in 2024, suggesting a lower proportion of debt in relation to equity in the company's capital structure. This trend indicates improved financial stability and reduced financial risk.
The Financial leverage ratio, which measures the company's use of debt to finance its operations compared to equity, shows an increasing trend from 1.53 in 2020 to 1.84 in 2024. Although the ratio has increased over the years, the overall trend indicates a balanced capital structure with an appropriate mix of debt and equity.
In conclusion, based on the solvency ratios, Qorvo Inc has shown improvement in its financial stability and reduced reliance on debt for financing its operations. The company's decreasing debt ratios and increasing financial leverage ratio suggest a healthier financial position and a more sustainable capital structure.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.06 | 2.82 | 19.65 | 11.74 | 7.54 |
Qorvo Inc's interest coverage has displayed variability over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest payments.
In the most recent period ending on March 31, 2024, Qorvo's interest coverage ratio was 2.06, showing a decrease from the previous year. This could raise concerns about the company's ability to comfortably cover its interest payments from its operating income.
Looking back, the interest coverage ratio was at a peak in March 2022, reaching 19.65, a significantly strong position indicating ample earnings to cover interest expenses. This drastic drop in interest coverage from 2022 to 2024 suggests a potential decline in operating performance or an increase in interest expenses.
It is important for investors and stakeholders to closely monitor Qorvo's interest coverage ratio to ensure the company remains in a healthy financial position to meet its debt obligations.