SanDisk Corp (SNDK)
Solvency ratios
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| 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 | 1.61 | 1.58 | 1.51 | 1.42 | 1.44 |
SanDisk Corp has shown consistent and effectively managed solvency ratios over the years as indicated by the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, which all remained at 0.00, signifying that the company had no debt obligations relative to its assets, capital, and equity. The financial leverage ratio increased gradually from 1.44 in 2011 to 1.61 in 2015, indicating a slight increase in the company's reliance on debt to finance its operations. Overall, SanDisk Corp's solvency ratios demonstrate a strong financial position and low leverage compared to its equity and capital, indicating a stable and sound financial foundation.
Coverage ratios
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Interest coverage | 36.42 | 100.37 | 436.55 | — | — |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. SanDisk Corp's interest coverage ratio for the years 2013, 2014, and 2015 were 436.55, 100.37, and 36.42, respectively.
The significant decline in the interest coverage ratio from 2013 to 2015 indicates that the company may be facing challenges in generating enough operating income to cover its interest expenses efficiently. This trend raises concerns about the company's financial health and its ability to manage its debt obligations effectively.
A declining interest coverage ratio can signal increased financial risk for investors and creditors as it suggests a higher likelihood of default on debt payments. SanDisk Corp may need to focus on improving its operating performance to strengthen its ability to meet interest expenses and maintain financial stability in the long term.