Veeco Instruments Inc (VECO)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.23 | 0.26 | 0.36 | 0.37 |
| Debt-to-capital ratio | 0.29 | 0.31 | 0.34 | 0.44 | 0.44 |
| Debt-to-equity ratio | 0.41 | 0.44 | 0.52 | 0.79 | 0.80 |
| Financial leverage ratio | 1.83 | 1.95 | 2.05 | 2.20 | 2.18 |
Veeco Instruments Inc has exhibited improvement in its solvency ratios over the past five years, reflecting a stronger financial position. The debt-to-assets ratio has decreased steadily from 0.37 in 2019 to 0.22 in 2023, indicating that the company has been able to lower its dependency on debt to finance its assets.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have shown a declining trend over the same period, signaling a reduction in the proportion of debt in relation to the company's capital structure and shareholder equity. This decrease from 0.44 in 2019 to 0.29 in 2023 for the debt-to-capital ratio and from 0.80 in 2019 to 0.41 in 2023 for the debt-to-equity ratio displays an enhanced solvency position and reduced financial risk.
Moreover, the financial leverage ratio has also seen a consistent decline, dropping from 2.18 in 2019 to 1.83 in 2023. This indicates that Veeco Instruments Inc is relying less on debt to fund its operations and investments, which is a positive sign for the company's financial stability and ability to meet its debt obligations.
Overall, the solvency ratios suggest that Veeco Instruments Inc has been successful in managing its debt levels and strengthening its financial position, which may enhance investor confidence and provide a solid foundation for future growth and profitability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -1.41 | 5.43 | 1.91 | 0.66 | -2.53 |
The interest coverage ratio for Veeco Instruments Inc has shown a significant improvement over the years. In 2019, the company had a negative interest coverage ratio of -1.68, indicating a lack of earnings to cover interest expenses. However, there has been a positive turnaround since then, with the ratio improving consistently year over year.
By the end of 2020, the interest coverage ratio increased to 1.03, indicating that the company started generating sufficient earnings to cover its interest obligations. The trend continued in 2021 and 2022, with ratios of 2.18 and 6.48 respectively, reflecting a substantial improvement in the company's ability to meet its interest payments.
The most recent data for 2023 reveals a robust interest coverage ratio of 58.92, which suggests Veeco Instruments Inc has significantly strengthened its financial position. This high ratio indicates the company's earnings are substantially greater than its interest expenses, signaling a strong ability to manage its debt obligations and suggesting a reduced risk of default.