Seagate Technology PLC (STX)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019
Debt-to-assets ratio 0.67 0.73 0.79 0.79 0.71 0.61 0.69 0.65 0.57 0.61 0.60 0.57 0.56 0.57 0.57 0.47 0.47 0.46 0.46 0.47
Debt-to-capital ratio 1.40 1.57 1.47 1.43 1.29 1.26 1.10 1.07 0.98 0.93 0.91 0.89 0.89 0.91 0.84 0.69 0.70 0.70 0.69 0.70
Debt-to-equity ratio — — — — — — — — 46.44 13.33 10.70 8.14 7.76 10.12 5.17 2.27 2.33 2.28 2.26 2.34
Financial leverage ratio — — — — — — — — 82.06 21.72 17.82 14.33 13.75 17.78 9.08 4.87 5.00 4.93 4.88 4.94

Seagate Technology PLC's solvency ratios indicate the company's ability to meet its financial obligations and the extent to which it relies on debt financing.

The debt-to-assets ratio has shown some fluctuations over the past few quarters, ranging between 0.46 and 0.79. This ratio indicates that, on average, 67% of the company's total assets are financed by debt. It is essential to monitor this ratio to ensure that the company is not overly reliant on debt to finance its operations.

The debt-to-capital ratio has also varied, with values between 0.69 and 1.57. This ratio reveals that, on average, 140% of the company's capital structure is comprised of debt. A higher ratio suggests higher financial risk due to increased levels of debt, so it is crucial for Seagate to manage its debt levels effectively.

The debt-to-equity ratio demonstrates the proportion of debt and equity in the company's capital structure. It has shown a decreasing trend over the quarters, indicating a reduction in reliance on debt financing. The most recent value of 2.34 implies that there is $2.34 of debt for every $1 of equity.

The financial leverage ratio, which determines the extent of financial risk faced by the company, also shows a decreasing trend. The ratio has ranged between 4.87 and 82.06, suggesting that the company is gradually reducing its financial leverage over time.

In conclusion, Seagate Technology PLC's solvency ratios reflect its financial stability and risk exposure. It is crucial for the company to maintain a balanced capital structure and effectively manage its debt levels to ensure long-term financial health and sustainability.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019
Interest coverage 2.34 0.47 -0.91 -1.06 -0.58 0.56 3.25 5.49 7.74 8.80 8.88 8.25 7.13 5.81 6.05 6.38 6.13 6.62 5.88 5.99

The interest coverage ratio for Seagate Technology PLC has fluctuated over the past few quarters, indicating changes in its ability to cover its interest expenses.

In the most recent quarter ending June 30, 2024, the interest coverage ratio improved to 2.34, suggesting that the company generated 2.34 times the income needed to cover its interest expenses. This is an improvement from the previous quarter, where the ratio was only 0.47, indicating a significant increase in its ability to cover interest payments.

However, looking back over the past few quarters, the interest coverage ratio has been volatile, with negative values recorded in some periods such as Dec 31, 2023, and Sep 30, 2023. A negative interest coverage ratio indicates that the company's operating income was not sufficient to cover its interest expenses, raising concerns about its financial health.

Overall, Seagate Technology PLC's interest coverage ratio has shown variability, and investors and creditors should closely monitor this metric to assess the company's ability to meet its interest obligations in the future.