Sensata Technologies Holding NV (ST)
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 | 2.47 | 2.56 | 2.81 | 2.78 | 2.90 |
Sensata Technologies Holding NV has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which were reported as 0.00 across the years 2020 to 2024. These ratios suggest that the company has minimal financial leverage and is not heavily reliant on debt financing to support its operations or growth.
Furthermore, the financial leverage ratio, which provides insight into the proportion of the company's assets that are financed by debt, has shown a decreasing trend over the same period. Starting at 2.90 in 2020 and declining to 2.47 in 2024, this ratio demonstrates a decreasing reliance on debt to fund the company's operations, which can be viewed positively as it indicates a lower risk of financial distress.
Overall, based on these solvency ratios, Sensata Technologies Holding NV appears to have a robust financial position with minimal debt obligations, indicating a strong ability to meet its financial obligations and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.92 | 1.20 | 3.22 | 3.25 | 1.96 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. Sensata Technologies Holding NV's interest coverage has shown fluctuations over the years based on the provided data.
As of December 31, 2020, the interest coverage ratio was 1.96, which suggests that the company's operating income was able to cover its interest expenses nearly twice over. This indicates a moderate level of financial health in terms of meeting interest payments.
By December 31, 2021, the interest coverage ratio improved to 3.25, signaling an increase in the company's ability to cover its interest expenses. This improvement may indicate better operational efficiency or a reduction in interest expenses compared to the previous year.
The interest coverage ratio remained relatively stable at 3.22 by December 31, 2022, reflecting continued strength in Sensata Technologies' ability to meet its interest obligations.
However, by December 31, 2023, the interest coverage ratio decreased significantly to 1.20, which might raise concerns about the company's ability to cover its interest payments adequately. This decline could be attributed to various factors such as a decrease in operating income or an increase in interest expenses.
Moreover, as of December 31, 2024, the interest coverage ratio dropped further to 0.92, indicating a more challenging situation for Sensata Technologies in meeting its interest obligations with its operating income.
Overall, the fluctuating trend in Sensata Technologies' interest coverage ratio highlights the importance of closely monitoring changes in operating income and interest expenses to ensure the company's financial health and ability to meet its debt obligations.