Semtech Corporation (SMTC)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.00 | 0.00 | 0.67 | 0.00 | 0.63 | 0.00 | 0.00 | 0.50 | 0.00 | 0.31 | 0.00 | 0.16 | 0.00 | 0.00 | 0.15 |
| Debt-to-capital ratio | 0.00 | — | — | — | — | 1.29 | 0.00 | 0.80 | 0.00 | 0.78 | 0.00 | 0.00 | 0.63 | 0.00 | 0.36 | 0.00 | 0.20 | 0.00 | 0.00 | 0.19 |
| Debt-to-equity ratio | 0.00 | — | — | — | — | — | 0.00 | 4.11 | 0.00 | 3.63 | 0.00 | 0.00 | 1.72 | 0.00 | 0.57 | 0.00 | 0.25 | 0.00 | 0.00 | 0.23 |
| Financial leverage ratio | 2.62 | — | — | — | — | — | 6.10 | 6.10 | 5.78 | 5.78 | 3.41 | 3.40 | 3.40 | 1.85 | 1.85 | 1.50 | 1.52 | 1.52 | 1.53 | 1.53 |
Based on the provided data, Semtech Corporation's solvency ratios exhibit some fluctuation over the years:
1. Debt-to-Assets Ratio: This ratio highlights the proportion of the company's assets financed by debt. Semtech's debt-to-assets ratio ranges from 0.00 to 1.00 over the years, indicating varying levels of reliance on debt to fund the company's asset base.
2. Debt-to-Capital Ratio: This ratio indicates the extent to which debt contributes to the company's capital structure. Semtech's debt-to-capital ratio fluctuates between 0.00 and 1.29, suggesting changes in the mix of debt and equity used to finance its operations.
3. Debt-to-Equity Ratio: This ratio showcases the relationship between debt and equity in the company's capital structure. Semtech's debt-to-equity ratio fluctuates from 0.00 to 4.11, reflecting changes in the balance between debt and shareholder equity over time.
4. Financial Leverage Ratio: This ratio compares the company's total assets to its equity, indicating the level of financial risk. Semtech's financial leverage ratio ranges from 1.50 to 6.10, showing fluctuations in the company's financial risk profile.
Overall, the solvency ratios of Semtech Corporation highlight the dynamic nature of its capital structure and financial risk exposure, which can impact its ability to meet its financial obligations and fund future growth initiatives. An analysis of these ratios over time can provide insights into the company's financial health and risk management practices.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.88 | -7.17 | -12.97 | -12.45 | -12.69 | -9.22 | -6.12 | -6.36 | -8.42 | -6.29 | -1.84 | -1.34 | 4.47 | 30.53 | 38.29 | 39.33 | 31.56 | 29.78 | 28.62 | 28.97 |
Semtech Corporation's interest coverage ratio has shown fluctuations over the past few years. The ratio stood at a healthy level of around 30 to 40 during the period from January 2022 to October 2022, indicating the company had a comfortable cushion to meet its interest obligations. However, starting from January 2023, the interest coverage ratio took a sharp decline, dipping into negative territory. This suggests that Semtech's earnings were insufficient to cover its interest expenses during this period.
The negative interest coverage ratios observed from January 2023 to January 2025 indicate a potential financial distress situation for Semtech Corporation, as the company may have been struggling to generate enough earnings to cover its interest payments. A sustained period of negative interest coverage ratios raises concerns about the company's ability to service its debt obligations and may indicate a need for financial restructuring or other remedial actions to address the situation.