Vishay Intertechnology Inc (VSH)
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 | 2.03 | 1.93 | 1.89 | 2.03 | 2.00 |
Based on the provided data for Vishay Intertechnology Inc, it is evident that the solvency ratios, including the Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio, all show a consistent trend of 0.00 over the period from December 31, 2020, to December 31, 2024. This indicates that the company has been effective in managing its debt levels relative to its total assets, capital, and equity, thus posing lower financial risk in terms of solvency.
However, when analyzing the Financial leverage ratio, we observe a slight fluctuation over the same period. The Financial leverage ratio stood at 2.00 on December 31, 2020, increased slightly to 2.03 by December 31, 2021, decreased to 1.89 by December 31, 2022, rose to 1.93 by December 31, 2023, and then returned to 2.03 by December 31, 2024. This indicates that the company's reliance on debt to finance its operations relative to equity has varied slightly over the years, but overall, the financial leverage remains within a moderate range.
In conclusion, based on the solvency ratios analyzed, Vishay Intertechnology Inc appears to have a strong financial position with minimal debt levels and stable leverage throughout the period under review. These factors suggest that the company has a solid financial base to support its operations and growth strategies, thereby enhancing its overall solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.91 | 19.34 | 35.65 | 25.78 | 6.34 |
The interest coverage ratio, which measures Vishay Intertechnology Inc's ability to meet its interest obligations, shows a fluctuating trend over the last five years. As of December 31, 2020, the interest coverage ratio stood at 6.34, indicating that the company was generating enough operating income to cover its interest expenses approximately 6 times.
The ratio improved significantly during the subsequent years, reaching 25.78 by December 31, 2021, and further increasing to 35.65 by the end of 2022. These higher ratios suggest that Vishay Intertechnology's operating income was more than sufficient to cover its interest expenses, reflecting a strong financial position and decreased financial risk during these periods.
However, there was a notable decline in the interest coverage ratio by December 31, 2024, where it dropped sharply to 0.91. This decline raises concerns as it indicates that the company's operating income may not be adequate to cover its interest obligations, potentially signaling financial strain and an increased risk of default on debt payments.
In conclusion, while Vishay Intertechnology Inc exhibited strong interest coverage ratios in the past few years, the significant decrease in 2024 warrants further investigation to assess the company's financial health and sustainability in meeting its debt obligations.