Sensata Technologies Holding NV (ST)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.47 | 2.47 | 2.72 | 2.56 | 2.56 | 2.60 | 2.61 | 2.69 | 2.81 | 2.84 | 2.85 | 2.80 | 2.78 | 2.83 | 2.89 | 2.85 | 2.90 | 2.94 | 2.84 | 2.68 |
The solvency ratios of Sensata Technologies Holding NV, including the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, indicate a healthy financial position with consistently low levels of debt relative to its assets, capital, and equity.
- Debt-to-assets ratio: The company has maintained a Debt-to-assets ratio of 0.00 throughout the period, indicating that the company carries no debt relative to its total assets. This signifies a low financial risk and strong financial stability.
- Debt-to-capital ratio: Similarly, the Debt-to-capital ratio has remained at 0.00 across all periods, suggesting that the company's debt is minimal relative to its capital structure. This reflects a conservative approach to financing and a strong ability to cover its financial obligations.
- Debt-to-equity ratio: The Debt-to-equity ratio has also consistently stood at 0.00 over the specified periods, indicating that the company's debt is non-existent when compared to its equity. This implies that the company is not highly leveraged and is not reliant on debt to fund its operations or investments.
- Financial leverage ratio: The Financial leverage ratio has exhibited some fluctuations but generally stayed within a narrow range between 2.47 and 2.94. This suggests that the company has effectively managed its debt levels in relation to its equity and has maintained a balanced capital structure over time.
Overall, the solvency ratios of Sensata Technologies Holding NV demonstrate a sound financial position with a prudent approach to debt management, which is essential for maintaining stability and sustaining long-term growth.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.93 | -0.88 | 1.24 | 1.04 | 1.12 | 3.42 | 3.94 | 4.08 | 3.46 | 3.37 | 2.93 | 2.97 | 3.31 | 3.25 | 3.34 | 2.48 | 2.13 | 2.02 | 2.09 | 3.02 |
The interest coverage ratio of Sensata Technologies Holding NV over the period from March 31, 2020, to December 31, 2024, shows some fluctuations. The interest coverage ratio measures the company's ability to pay interest on its outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
From March 31, 2020, to June 30, 2021, the interest coverage ratio ranged between 2.02 and 3.34, showing some variability but generally above 2, indicating a moderate ability to cover the interest payments.
There was a notable improvement in the interest coverage ratio in the first half of 2022, reaching a peak of 3.46 by December 31, 2022, indicating a stronger ability to cover interest expenses.
However, towards the end of 2023, there was a significant decline in the interest coverage ratio to 1.12 by December 31, 2023, and further dropped to 1.04 by March 31, 2024, and 0.93 by June 30, 2024. These declining ratios suggest a potential strain on Sensata Technologies' ability to cover its interest obligations with its operating profits.
Moreover, the interest coverage ratio became negative (-0.88) by September 30, 2024, which raises concerns about the company's capacity to meet its interest payments solely from its earnings.
In conclusion, the trend in Sensata Technologies' interest coverage ratio shows fluctuations, with periods of improved coverage followed by a significant decline. It indicates a varying ability to cover interest expenses over the analyzed period, with a notable deterioration towards the end of 2023 and into 2024, highlighting potential financial risks for the company.