Wolfspeed Inc (WOLF)
Solvency ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.77 | 0.74 | 0.71 | 0.71 | 0.63 | 0.55 | 0.57 | 0.34 | 0.26 | 0.27 | 0.14 | 0.26 | 0.24 | 0.23 | 0.26 | 0.25 | 0.24 | 0.18 | 0.17 | 0.17 |
| Debt-to-capital ratio | 0.87 | 0.85 | 0.82 | 0.81 | 0.72 | 0.64 | 0.63 | 0.38 | 0.30 | 0.30 | 0.16 | 0.29 | 0.28 | 0.27 | 0.30 | 0.29 | 0.27 | 0.20 | 0.19 | 0.19 |
| Debt-to-equity ratio | 6.98 | 5.54 | 4.49 | 4.14 | 2.57 | 1.77 | 1.70 | 0.62 | 0.42 | 0.42 | 0.19 | 0.41 | 0.39 | 0.36 | 0.43 | 0.42 | 0.38 | 0.25 | 0.24 | 0.23 |
| Financial leverage ratio | 9.05 | 7.53 | 6.34 | 5.87 | 4.06 | 3.20 | 3.00 | 1.83 | 1.61 | 1.57 | 1.35 | 1.59 | 1.63 | 1.56 | 1.68 | 1.64 | 1.55 | 1.41 | 1.40 | 1.38 |
The solvency ratios of Wolfspeed Inc show a trend of increasing leverage over the past few quarters. The debt-to-assets ratio has been rising steadily, from 0.17 in September 2019 to 0.77 in June 2024, indicating that the company's reliance on debt to finance its assets has been increasing over time.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also been trending upwards, reaching 0.87 and 6.98 respectively in June 2024. This indicates a higher proportion of debt in the company's overall capital structure and a higher level of financial risk.
The financial leverage ratio has also been on the rise, indicating that the company is increasingly using debt to finance its operations and investments. This increase in leverage can potentially lead to increased financial risk and lower financial flexibility for Wolfspeed Inc.
Overall, these solvency ratios suggest that Wolfspeed Inc has been taking on more debt to fund its operations and growth, which could expose the company to higher financial risks in the future. It is essential for the company to carefully manage its debt levels and ensure that it can support the debt obligations to maintain its solvency and financial stability.
Coverage ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -2.64 | -2.98 | -3.82 | -6.02 | -6.71 | -4.27 | -4.84 | -5.39 | -6.65 | -12.96 | -11.74 | -9.45 | -10.52 | -7.65 | -7.35 | -7.52 | -4.67 | -9.27 | -14.64 | -13.17 |
The interest coverage ratio for Wolfspeed Inc has shown a declining trend over the past few quarters, with values ranging from -2.64 to -14.64. This indicates that the company's ability to cover its interest expenses with its operating profits has deteriorated significantly. A negative interest coverage ratio suggests that the company is not generating enough operating income to cover its interest obligations, which raises concerns about its financial health and ability to meet debt obligations. Management should closely monitor this ratio and take necessary actions to improve profitability and strengthen the company's financial position.