TE Connectivity Ltd (TEL)

Solvency ratios

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 Dec 31, 2019
Debt-to-assets ratio 0.15 0.13 0.13 0.16 0.16 0.18 0.18 0.16 0.16 0.16 0.16 0.16 0.17 0.17 0.17 0.17 0.18 0.18 0.19 0.17
Debt-to-capital ratio 0.21 0.19 0.19 0.21 0.23 0.25 0.26 0.23 0.23 0.24 0.25 0.24 0.25 0.26 0.27 0.26 0.27 0.27 0.29 0.24
Debt-to-equity ratio 0.27 0.23 0.24 0.27 0.31 0.34 0.35 0.30 0.30 0.32 0.33 0.32 0.33 0.36 0.37 0.35 0.36 0.38 0.41 0.32
Financial leverage ratio 1.83 1.80 1.83 1.76 1.88 1.89 1.93 1.86 1.91 2.03 2.03 1.92 2.00 2.07 2.14 2.03 2.03 2.08 2.14 1.89

TE Connectivity Ltd's solvency ratios have shown some fluctuations over the past few periods. The debt-to-assets ratio has generally been within the range of 0.13 to 0.19, indicating that the company's level of debt in relation to its total assets has been relatively stable. However, there was a slight increase in the ratio towards the latter periods, which may imply a slight increase in financial risk.

The debt-to-capital ratio and debt-to-equity ratio have shown similar trends, with both ratios increasing over time. The debt-to-capital ratio has ranged from 0.19 to 0.29, while the debt-to-equity ratio has ranged from 0.23 to 0.41. These increases suggest that TE Connectivity Ltd has been relying more on debt financing compared to its capital and equity, which could potentially signal higher financial risk and leverage.

The financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, has also shown an increasing trend from 1.76 to 2.14 over the periods. This indicates that TE Connectivity Ltd's reliance on debt has been on the rise, potentially exposing the company to higher financial risk and interest rate sensitivity.

Overall, the increasing trend in the debt-related ratios suggests that TE Connectivity Ltd has been taking on more debt compared to its assets, capital, and equity over the analyzed periods. Investors and stakeholders may want to closely monitor the company's debt levels and financial risk management strategies in light of these trends.

Coverage ratios

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 Dec 31, 2019
Interest coverage 40.40 38.23 35.76 33.31 29.42 30.03 31.90 34.89 42.42 44.69 47.60 50.42 43.57 39.81 29.98 11.00 12.29 13.98 21.49 37.75

TE Connectivity Ltd has shown a consistently strong interest coverage ratio over the past several quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.

Looking at the trend, the interest coverage ratio has generally been increasing from December 2019 to September 2022, indicating the company's improving ability to meet its interest obligations. The ratio peaked at 50.42 in March 2022, which was a significant high point.

Although there was a slight decrease in the interest coverage ratio in recent quarters, dropping to 40.40 in September 2024, the company still maintains a robust ability to cover its interest expenses. Overall, the consistently high ratios suggest that TE Connectivity Ltd has a strong financial position and is capable of comfortably meeting its interest commitments with its operating income.