Rogers Corporation (ROG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.18 | 1.21 | 1.40 | 1.43 | 1.24 |
Rogers Corporation has consistently demonstrated strong solvency ratios over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00, indicating that the company has no significant debt relative to its total assets, capital, or equity. This suggests that Rogers Corporation relies more on equity financing rather than debt to fund its operations, which can be viewed positively from a solvency perspective.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has decreased steadily from 1.24 in 2020 to 1.18 in 2024. This declining trend indicates that Rogers Corporation is becoming less reliant on debt financing over the years, which can enhance its overall financial stability and reduce the risk of financial distress.
Overall, the consistent low values of the debt-related ratios and the declining financial leverage ratio reflect a strong financial position and solvency for Rogers Corporation, suggesting that the company is in a good position to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 22.44 | 7.75 | 15.78 | 51.01 | 11.31 |
Based on the data provided, I have analyzed Rogers Corporation's interest coverage ratio over the past five years. The interest coverage ratio is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations.
- December 31, 2020: The interest coverage ratio was 11.31, indicating that Rogers Corporation's EBIT was more than sufficient to cover its interest expenses.
- December 31, 2021: The interest coverage ratio significantly improved to 51.01, suggesting a substantial increase in profitability relative to interest obligations.
- December 31, 2022: The interest coverage ratio decreased to 15.78 from the previous year, but still remains at a comfortable level.
- December 31, 2023: The interest coverage ratio dropped to 7.75, indicating a potential strain on the company's ability to cover interest expenses with its current earnings.
- December 31, 2024: The interest coverage ratio recovered to 22.44, showing an improvement in the company's ability to meet its interest obligations compared to the previous year.
Overall, the trend in Rogers Corporation's interest coverage ratios shows fluctuations over the years, with some years demonstrating strong financial health and others indicating potential challenges in meeting interest payments. It is important for the company to closely monitor its interest coverage ratio to ensure financial stability and sustainability.