Veeco Instruments Inc (VECO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.62 | 1.83 | 1.95 | 2.05 | 2.20 |
Veeco Instruments Inc's solvency ratios indicate a strong financial position in terms of its ability to meet its long-term obligations and manage debt effectively.
- Debt-to-assets ratio: This ratio remained consistently low at 0.00 from 2020 to 2024, suggesting that Veeco Instruments Inc has no significant debt in relation to its total assets. This signifies a low financial risk and the company's ability to rely more on equity financing than debt.
- Debt-to-capital ratio: Similarly, the debt-to-capital ratio also stayed at 0.00 throughout the five-year period, indicating that the company has not been heavily reliant on debt to finance its operations. This suggests a conservative capital structure and lower financial risk for the company.
- Debt-to-equity ratio: The debt-to-equity ratio also stood at 0.00 across all five years, indicating that Veeco Instruments Inc has no debt in relation to its equity. This implies that the company is not highly leveraged and has a strong equity base to support its operations.
- Financial leverage ratio: The financial leverage ratio decreased from 2.20 in 2020 to 1.62 in 2024. A decreasing trend in this ratio indicates that the company has been reducing its reliance on debt over the years, which is a positive sign for investors and creditors. A lower financial leverage ratio signifies a lower proportion of debt in the company's capital structure.
Overall, based on these solvency ratios, Veeco Instruments Inc appears to have a robust financial position with minimal debt levels and a conservative approach towards managing its capital structure, indicating a lower risk of default and strong solvency.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.23 | -1.41 | 6.48 | 2.18 | 0.97 |
Veeco Instruments Inc's interest coverage ratio has shown some fluctuations over the past five years. In December 2020, the interest coverage ratio was below 1 at 0.97, indicating that the company was not generating enough operating income to cover its interest expenses. However, there seems to have been an improvement by December 2021, with the ratio increasing to 2.18, suggesting a better ability to meet interest obligations.
By December 2022, Veeco Instruments Inc's interest coverage ratio further improved to 6.48, reflecting a significantly stronger capacity to cover interest costs. However, this positive trend was reversed by December 2023, when the ratio declined to -1.41. A negative interest coverage ratio typically indicates that the company's operating income was insufficient to cover interest expenses.
The situation improved dramatically by December 2024, with a notable increase in the interest coverage ratio to 7.23, signaling a robust ability to pay interest charges. Overall, while Veeco Instruments Inc experienced fluctuations in its interest coverage ratio during the period, there were instances of both improvement and challenges in meeting interest obligations. It would be important for the company to sustain and enhance its ability to generate sufficient income to comfortably cover its interest expenses going forward.