Qorvo Inc (QRVO)
Solvency ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.23 | 0.30 | 0.31 | 0.31 | 0.29 | 0.28 | 0.28 | 0.27 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.30 | 0.35 | 0.35 | 0.34 | 0.33 | 0.32 | 0.32 | 0.31 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.43 | 0.54 | 0.54 | 0.52 | 0.49 | 0.47 | 0.48 | 0.45 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.84 | 1.84 | 1.76 | 1.75 | 1.71 | 1.70 | 1.71 | 1.70 | 1.65 | 1.63 | 1.60 | 1.56 | 1.56 | 1.56 | 1.78 | 1.58 | 1.53 | 1.50 | 1.37 | 1.37 |
Based on the solvency ratios of Qorvo Inc, we can observe the following trends:
1. Debt-to-assets ratio: Qorvo Inc held no debt relative to its assets in the most recent quarter, indicating a strong financial position with minimal financial leverage. The ratio has been decreasing steadily over the quarters, suggesting improved asset coverage and reduced reliance on debt to finance operations.
2. Debt-to-capital ratio: The debt-to-capital ratio also reflects a low level of indebtedness, with Qorvo Inc maintaining a minimal level of debt compared to its total capital. The ratio has remained relatively stable over time, hovering around 0.30 to 0.35, indicating a consistent balance between debt and equity in the capital structure.
3. Debt-to-equity ratio: Qorvo Inc's debt-to-equity ratio shows a similar trend to the debt-to-capital ratio, signaling a conservative approach to financing through debt. The company has kept a moderate level of debt in relation to its equity, with the ratio fluctuating around 0.45 to 0.54, indicating a healthy mix of debt and equity in the capital structure.
4. Financial leverage ratio: The financial leverage ratio has been decreasing gradually over the quarters, implying that Qorvo Inc has been reducing its reliance on debt financing to support its operations. The decreasing trend in this ratio suggests improved financial stability and a lower risk of financial distress.
Overall, Qorvo Inc's solvency ratios indicate a strong and stable financial position, with a prudent approach to managing debt and maintaining a healthy balance between debt and equity in its capital structure. The decreasing trend in leverage ratios reflects improved financial health and risk management by the company.
Coverage ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.06 | -1.24 | -0.66 | 0.90 | 2.82 | 9.32 | 13.82 | 15.73 | 19.65 | 20.89 | 19.29 | 15.09 | 11.74 | 8.43 | 7.97 | 7.63 | 7.54 | 8.35 | 7.03 | 5.80 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.
Looking at the trend in Qorvo Inc's interest coverage ratio over the past few quarters, we can see fluctuations in the company's ability to cover its interest expenses.
In the most recent quarter, as of March 31, 2024, the interest coverage ratio stood at 2.06, indicating that the company generated 2.06 times the amount needed to cover its interest expenses. This suggests a moderate ability to meet interest obligations.
In the previous quarter, December 31, 2023, the interest coverage ratio was -1.24, which raises a concern as the company's EBIT was insufficient to cover its interest expenses. This negative ratio implies that the company's earnings were not enough to cover its interest payments.
Looking back at the history of Qorvo Inc's interest coverage, we can see some fluctuations, with the ratio ranging from negative values to as high as 20.89 in the past few quarters. This variability may indicate changes in the company's operating performance and financial health.
Overall, a trend of declining interest coverage ratios or negative values could signal potential financial distress or a growing burden of interest expenses on the company's earnings, which would require careful monitoring and analysis to understand the underlying causes and implications for the company's financial sustainability.