TE Connectivity Ltd (TEL)

Solvency ratios

	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	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	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	0.17	0.17	0.17
Debt-to-capital ratio	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	0.24	0.24	0.25
Debt-to-equity ratio	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	0.32	0.32	0.34
Financial leverage ratio	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	1.86	1.86	1.93

TE Connectivity Ltd's solvency ratios provide insights into its ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.16 to 0.18 over the past few quarters, indicating that the company's total debt is a relatively small portion of its total assets.

The debt-to-capital ratio has shown an increasing trend, from 0.21 to 0.29, suggesting that a larger proportion of the company's capital structure is funded by debt. This could potentially increase financial risk and interest obligations over time.

Similarly, the debt-to-equity ratio has been on the rise, indicating an increasing reliance on debt financing compared to equity. The ratio has moved from 0.27 to 0.41, signaling a higher proportion of debt relative to equity in the company's capital structure.

The financial leverage ratio has also exhibited an upward trend, from 1.76 to 2.14, reflecting a higher level of financial leverage and debt utilization by the company. This could amplify both returns and risks for shareholders.

Overall, TE Connectivity Ltd's increasing debt levels and leverage ratios suggest a shift towards a more leveraged financial structure, which could impact its financial flexibility and risk profile in the long run. Management may need to closely monitor and manage the company's debt levels to maintain a healthy solvency position.

Coverage ratios

	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	Jun 30, 2019	Mar 31, 2019
Interest coverage	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	27.90	24.52	21.51

TE Connectivity Ltd's interest coverage ratio has been consistently high over the past few quarters, indicating strong ability to meet its interest payment obligations. The interest coverage ratio has fluctuated between 10.00 and 50.42 during the period under review. The company's interest coverage ratio peaked at 50.42 in March 2022 and has since remained above 20.00, reflecting a healthy level of earnings relative to its interest expenses.

The high interest coverage ratio suggests that TE Connectivity Ltd has generated more than enough operating income to cover its interest expenses, providing a cushion against any potential downturns or financial difficulties. Overall, the company appears to have a solid financial position in terms of its ability to meet its interest payments.