Vicor Corporation (VICR)
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 | 1.12 | 1.10 | 1.16 | 1.13 | 1.13 |
Vicor Corporation's solvency ratios reflect a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the five-year period from 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have remained at 0.00 throughout this period, indicating that the company has not relied significantly on debt financing to support its operations.
Additionally, the Financial leverage ratio has hovered around 1.13 to 1.16, showing a modest increase in 2022 followed by a slight decrease in subsequent years. This suggests that the company's assets are financed primarily through equity rather than debt, contributing to a lower risk of financial distress and a healthier balance sheet overall.
Overall, Vicor Corporation's solvency ratios demonstrate a conservative approach to capital structure management, which is beneficial for long-term stability and resilience in the face of economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 25.76 | 4.31 | 1.43 |
Vicor Corporation's interest coverage ratio has shown a significant improvement over the past few years. In December 31, 2020, the interest coverage ratio was 1.43, indicating that the company's operating income was just sufficient to cover its interest expenses. However, by December 31, 2021, the ratio increased to 4.31, reflecting a better ability to meet its interest obligations.
The most notable improvement is seen in December 31, 2022, where the interest coverage ratio surged to 25.76. This signifies a strong financial position, as Vicor Corporation's operating income is substantially higher than its interest expenses, allowing for ample coverage of interest payments.
It is important to note that the data for December 31, 2023, and December 31, 2024, is missing, which may indicate a lack of available information or a change in reporting practices.
Overall, the trend in Vicor Corporation's interest coverage ratio shows a positive trajectory, with a notably strong performance in 2022. This indicates the company's improving ability to manage its interest obligations and suggests a healthier financial position.