Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Selected Financial Data since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Solvency Ratios (Summary)
Amphenol Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Debt to Equity Ratio
- The debt to equity ratio shows a generally downward trend from 1.16 at the beginning of 2020 to 0.50 by the first quarter of 2024. This indicates a steady reduction in reliance on debt relative to equity over the observed period, suggesting an improvement in the company’s financial structure and a shift towards lower financial risk.
- Debt to Capital Ratio
- This ratio also demonstrates a consistent decline, moving from 0.54 in early 2020 to 0.33 in early 2024. The falling debt to capital ratio reflects a gradual decrease in the proportion of debt used in the overall capital mix, pointing to enhanced capitalization and possibly a more conservative financing strategy.
- Debt to Assets Ratio
- The debt to assets ratio trends downward as well, starting at 0.42 in the first quarter of 2020 and decreasing to 0.26 by the first quarter of 2024. This trend signals a reduction in the portion of assets financed through debt, which may indicate improved asset management or increased asset base relative to debt levels.
- Financial Leverage
- Financial leverage shows a decreasing pattern from 2.75 in March 2020 to 1.93 by March 2024. This decline suggests the company has been reducing its use of borrowed funds in relation to its equity, thereby lowering risk and enhancing financial stability.
- Interest Coverage Ratio
- The interest coverage ratio exhibits a positive trend, increasing from 13.3 at the start of 2020 up to 19.05 by the first quarter of 2024. This increasing ratio indicates the company's growing ability to meet interest obligations comfortably, reflecting improved operational earnings or lower interest expenses relative to earnings.
Debt Ratios
Coverage Ratios
Debt to Equity
Amphenol Corp., debt to equity calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Stockholders’ equity attributable to Amphenol Corporation | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity attributable to Amphenol Corporation
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends regarding debt, equity, and leverage over the observed periods.
- Total Debt
- The total debt exhibited significant fluctuations over the period. Initially, there was a notable decrease from approximately 5.09 billion USD to around 3.77 billion USD by mid-2020. After a period of relative stability in late 2020, total debt increased sharply reaching a peak near 5.25 billion USD in September 2021. Following this peak, total debt demonstrated a gradual decline through 2022 and into early 2023, eventually stabilizing around 4.3 billion USD by the first quarter of 2024.
- Stockholders’ Equity Attributable to Amphenol Corporation
- Stockholders’ equity showed a consistent upward trend throughout the entire timeframe. Starting at approximately 4.39 billion USD in the first quarter of 2020, equity steadily increased every quarter, with no significant periods of decline or stagnation. By the first quarter of 2024, stockholders’ equity reached about 8.68 billion USD, nearly doubling from the initial value. This reflects a strengthening equity base and accumulation of retained earnings or capital over the period.
- Debt to Equity Ratio
- The debt to equity ratio decreased markedly over the period, indicating an improvement in the company's leverage position. At the beginning of 2020, the ratio was relatively high at 1.16, implying that total debt exceeded equity. This ratio steadily declined with minor fluctuations, particularly after mid-2021, where it dropped below 1.0 and continued trending downward to 0.50 by the first quarter of 2024. The downward trend signifies a reduction in reliance on debt financing relative to equity, enhancing financial stability and potentially improving creditworthiness.
Overall, the company demonstrated a strategic deleveraging pattern, reducing total debt and strengthening equity simultaneously, thereby improving its capital structure. The progressive increase in equity coupled with a declining debt-to-equity ratio reflects a more conservative financial approach, which may reduce financial risk and provide greater flexibility for future investments or operations.
Debt to Capital
Amphenol Corp., debt to capital calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Stockholders’ equity attributable to Amphenol Corporation | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial leverage trends over the periods under review reveals several important patterns in the company's capital structure.
- Total Debt
- Total debt exhibited a notable decline from the first quarter of 2020 through mid-2020, dropping sharply from approximately 5.1 billion USD to around 3.7 billion USD. Following this reduction, total debt gradually increased again during 2021, peaking close to 5.25 billion USD in the third quarter of 2021. Thereafter, a sustained downward trajectory was observed from late 2021 through 2023, with total debt decreasing to approximately 4.3 billion USD by the first quarter of 2024.
- Total Capital
- Total capital showed a steady upward trend across the entire timeline. Starting at approximately 9.5 billion USD in early 2020, total capital increased almost continuously, reaching nearly 13 billion USD by the first quarter of 2024. This consistent growth indicates an expanding capital base over the period.
- Debt to Capital Ratio
- The debt to capital ratio declined significantly from 0.54 in the first quarter of 2020 to 0.33 by the first quarter of 2024. This reduction reflects a decrease in the relative proportion of debt financing in the company's capital structure. The ratio saw a steep decline early on, followed by moderate fluctuations between 0.42 and 0.48 during 2021 but resumed a steady decline from 2022 onwards.
Overall, the data suggest a deliberate strategy toward deleveraging combined with capital growth. The company reduced its reliance on debt as a financing source while expanding its capital base steadily. This shift points toward enhanced financial stability and potentially greater capacity for future investment or risk absorption.
Debt to Assets
Amphenol Corp., debt to assets calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
The total debt experienced a significant decline from March 2020 to June 2020, dropping from approximately $5.09 billion to $3.77 billion. Following this sharp decrease, it generally increased again, peaking around mid-2021 at about $5.25 billion. From late 2021 onwards, total debt has gradually declined with slight fluctuations, reaching approximately $4.31 billion by March 2024. This trend suggests efforts to manage and reduce leverage after the initial increase during 2021.
- Total Assets
-
Total assets demonstrated an overall upward trend across the examined period. Starting at approximately $12.08 billion in March 2020, the assets increased steadily, with some periods of accelerated growth especially from early 2021 through 2024. By March 2024, total assets had grown to about $16.72 billion, indicating consistent asset base expansion over the quarterly periods.
- Debt to Assets Ratio
-
The debt to assets ratio showed a steady decline from 0.42 in March 2020 to 0.26 by March 2024. This ratio fell continuously with minor variability, reflecting a relative reduction in leverage over time. The decreasing ratio indicates that while total debt fluctuated, the growth in total assets outpaced debt increases, improving the company's overall financial stability and reducing financial risk as measured by this indicator.
Financial Leverage
Amphenol Corp., financial leverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Stockholders’ equity attributable to Amphenol Corporation | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity attributable to Amphenol Corporation
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the observed periods.
- Total Assets
- Total assets demonstrated an overall upward trajectory from approximately 12.08 billion USD at the end of the first quarter of 2020 to about 16.72 billion USD by the end of the first quarter of 2024. There was a slight decline in total assets during the middle of 2020, reaching a low point in the second quarter before consistently increasing through 2021 and 2022. The growth continued into 2023 and early 2024, indicating expansion and the accumulation of resources over these years.
- Stockholders’ Equity Attributable to Amphenol Corporation
- Equity attributable to shareholders also exhibited a steady increase, rising from approximately 4.39 billion USD in the first quarter of 2020 to roughly 8.68 billion USD by the first quarter of 2024. This consistent growth in equity suggests effective retention of earnings and possible issuance of stock contributing to the strengthening of the company’s financial foundation.
- Financial Leverage Ratio
- The financial leverage ratio showed a marked decline over the period, decreasing from 2.75 in the first quarter of 2020 to 1.93 by the first quarter of 2024. This reduction signals a lowering reliance on debt relative to equity financing. The leverage ratio trend declined more sharply after early 2021, implying a strategic shift towards strengthening the equity base or reducing debt obligations.
In summary, the company’s assets and equity have grown notably over the four-year span analyzed, while the financial leverage ratio diminished significantly. This combination suggests an overall strengthening of the company’s balance sheet with improved solvency and reduced financial risk. The positive trajectory in equity and controlled leverage levels reflect prudent financial management and potential for sustainable growth.
Interest Coverage
Amphenol Corp., interest coverage calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income attributable to Amphenol Corporation | |||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
| Less: Income from discontinued operations, net of income taxes | |||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Interest coverage
= (EBITQ1 2024
+ EBITQ4 2023
+ EBITQ3 2023
+ EBITQ2 2023)
÷ (Interest expenseQ1 2024
+ Interest expenseQ4 2023
+ Interest expenseQ3 2023
+ Interest expenseQ2 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the financial data over the period from March 31, 2020, to March 31, 2024, reveals notable trends in earnings before interest and tax (EBIT), interest expense, and interest coverage ratio.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures demonstrate a generally increasing trend across the examined periods. Starting at 318,000 thousand USD in the first quarter of 2020, the EBIT values show consistent growth with some fluctuations. The growth is particularly evident from 2021 onwards, where EBIT rises from 464,500 thousand USD in March 2021 to a peak of approximately 700,800 thousand USD by March 2024. This indicates strengthening operational profitability over time, with the highest values recorded in the most recent periods.
- Interest Expense
- The interest expense remains relatively stable throughout the timeframe, fluctuating modestly between approximately 28,000 and 38,100 thousand USD. While there are minor increases and decreases in quarterly expenses, the overall level of interest costs does not exhibit a clear trend of growth or decline but appears manageable relative to EBIT.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the company's ability to meet interest obligations from EBIT, shows a consistent upward trajectory. Beginning at 13.3 times in March 2020, this ratio steadily improves through the timeline, reaching approximately 19.05 times by March 2024. The progressive increase reflects both the growth in EBIT and the stable interest expense levels, suggesting improved financial health and greater capacity to cover interest payments from operating earnings.
In summary, the company demonstrates improving earnings performance with EBIT growing significantly over the four-year period. The interest expenses remain stable and well-controlled, contributing to the strengthening interest coverage ratio. This pattern indicates enhanced operational efficiency and robust financial stability concerning interest-bearing obligations.