Rogers Corporation (ROG)

Rogers Corp.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations. Over the past five years, the trend in the company's solvency ratios generally indicates a conservative and stable financial structure.

The debt-to-assets ratio, which measures the proportion of the company's total assets financed by debt, shows a relatively low and consistent level, fluctuating between 0.02 and 0.13. This suggests that Rogers Corp. has a strong ability to cover its liabilities with its assets.

Similarly, the debt-to-capital and debt-to-equity ratios demonstrate a conservative capital structure, with the company maintaining a low level of debt in relation to its total capital and equity. These ratios have remained fairly stable over the years, indicating prudent financial management and a low-risk debt profile.

The financial leverage ratio, which reflects the extent of the company's reliance on debt financing, also shows a consistent trend, hovering around 1.2 to 1.4. This indicates that Rogers Corp. has maintained a moderate level of leverage, striking a balance between utilizing debt for growth opportunities and maintaining financial stability.

Overall, based on the solvency ratios analyzed, Rogers Corp. appears to have a sound financial position with a conservative approach to debt management, allowing the company to mitigate financial risks and ensure long-term sustainability.

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Coverage ratios

The interest coverage ratio of Rogers Corp. has shown fluctuating trends over the past five years. In 2023, the interest coverage ratio was 6.93, indicating the company generated operating income nearly 6.93 times sufficient to cover its interest expenses for the year. Although the ratio decreased slightly compared to the previous year, it remained at a relatively healthy level.

In 2022, the interest coverage ratio was 7.06, and it further increased significantly to 50.19 in 2021. This substantial jump in 2021 suggests a significant improvement in the company's ability to cover interest expenses with operating income. However, such a high ratio in 2021 could be due to exceptional circumstances or one-time events.

In 2020, the interest coverage ratio was 11.93, showing a decrease compared to the previous year but still indicating that the company had a comfortable buffer to meet its interest obligations. Moreover, in 2019, the ratio stood at 17.08, reflecting solid financial health and a strong ability to handle interest payments.

Overall, while the interest coverage ratio for Rogers Corp. has fluctuated in recent years, it generally demonstrates that the company has been able to meet its interest obligations comfortably. Investors and creditors may monitor changes in this ratio to assess the company's financial stability and ability to service its debt in the future.