Seagate Technology PLC (STX)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | 82.06 | 21.72 | 17.82 | 14.33 | 13.75 | 17.78 | 9.08 | 4.87 |
The analysis of Seagate Technology PLC’s solvency ratios over the provided period indicates a consistent financial structure characterized by negligible or nonexistent debt levels. Specifically, the debt-to-assets ratio remains at 0.00 throughout all observed dates, signifying that the company has not reported any interest-bearing liabilities relative to its total assets during this period. This stability suggests a conservative approach to leverage, relying primarily on equity financing rather than debt.
Similarly, the debt-to-capital ratio also persistently registers at 0.00, further confirming the absence of debt liabilities within the company’s capital structure up to the latest date observed. The lack of debt indicates that the company does not utilize leverage to finance its operations, thereby eliminating default risk associated with debt obligations.
The debt-to-equity ratio aligns with these findings, maintaining a value of 0.00 across all periods. This consistency confirms that the company’s equity funding constitutes its entire capital structure, with no debt obligations to compare against equity.
However, notable fluctuations are present in the financial leverage ratio, which shows a significant increase from 4.87 at September 30, 2020, to a peak of 82.06 at June 30, 2022. This ratio measures the extent to which the company employs debt relative to equity; thus, the sharp rise suggests a period where leverage significantly increased, potentially indicating a shift in capital strategy during that timeframe. After June 2022, subsequent data points are not available, represented by placeholders, which precludes further trend analysis.
Overall, the data reflect that Seagate Technology PLC has historically maintained an exceptionally low or zero leverage profile, aligning with a conservative financial policy that minimizes solvency risk. The substantial fluctuations in the financial leverage ratio in the early part of the period highlight transient variations in the use of debt—possibly attributable to short-term strategic adjustments—but the overarching structure remains debt-free as indicated by the ratios at all reported points.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.95 | 5.69 | 4.72 | 3.70 | 2.35 | 0.40 | -0.95 | -1.50 | -1.07 | 0.19 | 2.81 | 5.47 | 7.69 | 8.58 | 8.67 | 8.07 | 6.88 | 5.75 | 5.94 | 6.24 |
The analysis of Seagate Technology PLC’s interest coverage ratios over the specified periods reveals a notable decline beginning in late 2022 and into early 2023, followed by a period of improvement extending into 2024 and mid-2025.
From September 30, 2020, through December 31, 2021, the interest coverage ratio remained relatively stable and strong, fluctuating between approximately 5.75 and 8.67. This indicates that during this period, Seagate was comfortably able to meet its interest obligations, with earnings before interest and taxes (EBIT) substantially exceeding interest expenses.
However, starting in September 2022, a marked deterioration is observed, with the ratio dropping sharply to 5.47 in September 2022, then plunging to 2.81 by December 2022. The downward trend accelerated further into 2023, with ratios declining to as low as 0.19 in March 2023, and turning negative in the subsequent quarters (-1.07 in June 2023 and -1.50 in September 2023). Negative interest coverage ratios suggest that EBIT was insufficient to cover interest expenses, indicating a period of significant financial strain and potential difficulty in servicing debt solely from operating earnings.
Following this low point, the ratio shows signs of recovery. As of the March 31, 2024, figure, the ratio increased to 0.40, and continued improving in subsequent quarters, reaching 2.35 by June 30, 2024, and further rising to 3.70 in September 2024. By December 2024 and into early 2025, the ratio strengthened further to 4.72 and then to 5.69, respectively. This upward trend suggests an easing of financial stress, with EBIT increasingly covering interest expenses more comfortably.
In summary, Seagate’s interest coverage ratio experienced a robust period through late 2020 and 2021, followed by a significant decline starting in late 2022, culminating in negative coverage in early 2023. Nonetheless, recent data indicates a noteworthy recovery trajectory, pointing to improved operating performance and a reduction in financial leverage pressures over the latest periods.