TTM Technologies Inc (TTMI)

Based on the solvency ratios provided for TTM Technologies Inc over the past five years, we can assess the company's financial leverage and debt management.

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. TTM Technologies Inc's debt-to-assets ratio has fluctuated between 0.26 and 0.34 over the period, indicating that, on average, around 28-34% of the company's assets are funded by debt. The decreasing trend from 2021 to 2023 suggests improved efficiency in managing debt relative to assets.

2. Debt-to-capital ratio: The debt-to-capital ratio provides insight into the extent to which a company's capital structure relies on debt financing. TTM Technologies Inc's ratio has ranged from 0.36 to 0.49 during the period, indicating that debt constitutes approximately 36-49% of the company's total capital. The decrease from 2021 to 2023 reflects a positive trend in reducing dependency on debt capital.

3. Debt-to-equity ratio: This ratio measures the company's reliance on debt relative to equity. TTM Technologies Inc's debt-to-equity ratio varied between 0.57 and 0.96 over the five-year period, indicating that, on average, around 57-96% of the company's capital is sourced from debt. The declining trend from 2021 to 2023 suggests a more conservative approach towards debt utilization.

4. Financial leverage ratio: The financial leverage ratio indicates the degree to which a company uses debt to finance its assets. TTM Technologies Inc's financial leverage ratio ranged from 2.01 to 2.78 over the period, implying that the company's assets are, on average, leveraged 2.01-2.78 times with debt. The decreasing trend from 2021 to 2023 signifies a reduction in financial risk associated with debt leverage.

In summary, TTM Technologies Inc has shown a general trend of improving solvency ratios over the past five years, indicating better debt management and reduced reliance on debt financing. These improvements suggest a strengthening financial position and enhanced solvency for the company.

---

Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

Analyzing the trend in TTM Technologies Inc's interest coverage over the past five years, we can observe fluctuations in the ratio. In 2023, the interest coverage ratio significantly decreased to 1.01 from 5.02 in the previous year. This sharp decline may raise concerns about the company's ability to cover its interest expenses with its operating income. A ratio of 1.01 indicates that the company's EBIT only covers its interest payments by a very narrow margin, potentially signaling financial risk.

Comparing the 2023 ratio to earlier years, we see that TTM Technologies Inc had more comfortable interest coverage ratios in 2022 and 2021 at 5.02 and 2.54, respectively. These ratios suggest that the company had stronger earnings relative to its interest expenses during those periods.

In 2020 and 2019, the interest coverage ratios were 3.02 and 1.53, respectively. These ratios indicate varying levels of ability to meet interest obligations, with 2020 showing relatively stronger coverage compared to 2019.

Overall, the analysis of TTM Technologies Inc's interest coverage ratios highlights the importance of monitoring the company's ability to generate sufficient earnings to cover its interest expenses. The significant decrease in the ratio in 2023 underscores the need for further evaluation of the company's financial health and potential strategies to improve its interest coverage position.