Semtech Corporation (SMTC)
Solvency ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.00 | 0.67 | 0.63 | 0.53 | 0.50 | 0.31 | 0.14 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.19 | 0.19 | 0.17 | 0.17 | 0.18 |
| Debt-to-capital ratio | 1.29 | 0.80 | 0.78 | 0.65 | 0.63 | 0.36 | 0.18 | 0.20 | 0.19 | 0.20 | 0.20 | 0.20 | 0.20 | 0.21 | 0.22 | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 |
| Debt-to-equity ratio | — | 4.11 | 3.63 | 1.82 | 1.72 | 0.57 | 0.22 | 0.25 | 0.23 | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.28 | 0.29 | 0.29 | 0.26 | 0.27 | 0.27 |
| Financial leverage ratio | — | 6.10 | 5.78 | 3.41 | 3.40 | 1.85 | 1.50 | 1.52 | 1.53 | 1.56 | 1.55 | 1.52 | 1.55 | 1.55 | 1.56 | 1.55 | 1.55 | 1.51 | 1.53 | 1.52 |
The solvency ratios of Semtech Corporation demonstrate a stable financial position over the analyzed period. The debt-to-assets ratio has shown a general decreasing trend, indicating that the company is relying less on debt to finance its assets. This suggests a healthier balance between debt and assets.
Similarly, the debt-to-capital ratio has also exhibited a downward trend, showing that Semtech has been able to reduce its reliance on debt for financing its operations. This implies that the company has a better mix of debt and equity in its capital structure.
The debt-to-equity ratio fluctuated but generally trended downwards, indicating a decreasing reliance on debt relative to equity. This signifies that Semtech has been able to strengthen its equity position compared to its debt position over time.
Moreover, the financial leverage ratio has decreased consistently over the period, reflecting the company's ability to reduce its financial risk and leverage. This indicates a lower dependency on debt to fund its operations and investments.
Overall, based on the solvency ratios analyzed, Semtech Corporation appears to have maintained a solid financial position, with decreasing reliance on debt financing and a healthier balance between debt and equity in its capital structure.
Coverage ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -9.93 | -4.51 | -5.49 | 0.93 | 5.24 | 33.95 | 36.29 | 31.55 | 28.48 | 23.56 | 21.40 | 17.52 | 14.05 | 12.74 | 9.82 | 7.21 | 6.03 | 7.49 | 10.23 | 13.32 |
The interest coverage ratio for Semtech Corporation has fluctuated significantly over the past few quarters. The ratio indicates the company's ability to cover its interest expenses with its operating income.
In the most recent quarter, the interest coverage ratio was negative 9.93, indicating that the company's operating income was insufficient to cover its interest expenses. This suggests a potential financial risk as the company may have difficulty meeting its debt obligations.
However, looking at historical data, we see a pattern of improving interest coverage ratios in the preceding quarters. The ratio has shown an upward trend since the negative ratio in the fourth quarter of fiscal year 2023, indicating a positive improvement in the company's ability to cover its interest expenses.
It is important to note that while the most recent ratio is concerning, the company's improving trend in the preceding quarters may signify efforts to strengthen its financial position. Further monitoring of the interest coverage ratio will be essential to assess the company's ongoing financial health and ability to service its debt obligations.