Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Broadcom Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-Q (reporting date: 2026-02-01), 10-K (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-Q (reporting date: 2025-02-02), 10-K (reporting date: 2024-11-03), 10-Q (reporting date: 2024-08-04), 10-Q (reporting date: 2024-05-05), 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
The analyzed period reveals a significant shift in the organization's solvency profile, transitioning from a high-leverage capital structure to a more conservative financial position. A distinct inflection point is observed in early 2024, marking the beginning of a sustained reduction across nearly all debt-related metrics.
- Debt-to-Equity and Debt-to-Capital Ratios
- A consistent deleveraging trend is evident starting in February 2024. The debt-to-equity ratio, which peaked at 1.89 in July 2022, declined sharply to 1.08 by February 2024 and continued a downward trajectory to reach 0.60 by August 2026. Similarly, the debt-to-capital ratio remained relatively stable between 0.61 and 0.65 from 2021 through 2023, before descending to 0.37 by the end of the observed period. These movements indicate a strategic shift toward increasing equity relative to total debt.
- Debt-to-Assets and Financial Leverage
- The debt-to-assets ratio exhibited high stability between 0.53 and 0.55 for the first three years of the analysis. Following the trend seen in other solvency metrics, this ratio began to contract in early 2024, ending at 0.32 in August 2026. Financial leverage followed a corresponding pattern, peaking at 3.42 in mid-2022 and subsequently decreasing to 1.89 by August 2026, suggesting a reduced reliance on borrowed funds to finance assets.
- Interest Coverage and Debt Serviceability
- Interest coverage demonstrated a period of strong growth from January 2021 (2.82) to October 2023 (10.31), indicating an increasing capacity to meet interest obligations. A notable contraction occurred during 2024, with the ratio dipping to a low of 3.51 in August 2024. However, a robust recovery followed, with the ratio climbing steadily to a peak of 13.99 by August 2026. This recovery, paired with the declining debt ratios, points to a significantly strengthened ability to service outstanding debt.
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Debt Ratios
Coverage Ratios
Debt to Equity
Broadcom Inc., debt to equity calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Short-term debt | 2,252) | 2,252) | 2,252) | 3,152) | 1,399) | 5,531) | 5,653) | 1,271) | 3,161) | 2,426) | 2,433) | 1,608) | 1,119) | 1,117) | 1,115) | 440) | 304) | 302) | 300) | 290) | 279) | 278) | 864) | |||||||
| Long-term debt | 57,167) | 62,655) | 63,805) | 61,984) | 62,830) | 61,751) | 60,926) | 66,295) | 66,798) | 71,590) | 73,468) | 37,621) | 38,222) | 38,194) | 38,167) | 39,075) | 39,191) | 39,164) | 39,205) | 39,440) | 40,178) | 40,160) | 41,068) | |||||||
| Total debt | 59,419) | 64,907) | 66,057) | 65,136) | 64,229) | 67,282) | 66,579) | 67,566) | 69,959) | 74,016) | 75,901) | 39,229) | 39,341) | 39,311) | 39,282) | 39,515) | 39,495) | 39,466) | 39,505) | 39,730) | 40,457) | 40,438) | 41,932) | |||||||
| Stockholders’ equity | 99,690) | 87,691) | 79,872) | 81,292) | 73,277) | 69,586) | 69,789) | 67,678) | 65,651) | 69,961) | 70,284) | 23,988) | 22,079) | 22,007) | 23,310) | 22,709) | 20,876) | 20,963) | 22,968) | 24,962) | 24,340) | 23,939) | 23,973) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | 0.60 | 0.74 | 0.83 | 0.80 | 0.88 | 0.97 | 0.95 | 1.00 | 1.07 | 1.06 | 1.08 | 1.64 | 1.78 | 1.79 | 1.69 | 1.74 | 1.89 | 1.88 | 1.72 | 1.59 | 1.66 | 1.69 | 1.75 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.07 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.03 | — | — | — | — | |||||||
| Analog Devices Inc. | 0.27 | 0.26 | 0.26 | 0.25 | 0.25 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | 0.20 | 0.20 | 0.19 | 0.19 | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 | 0.18 | 0.42 | 0.42 | 0.43 | |||||||
| Applied Materials Inc. | 0.26 | 0.27 | 0.30 | 0.32 | 0.32 | 0.33 | 0.34 | 0.33 | 0.33 | 0.31 | 0.32 | 0.34 | 0.37 | 0.40 | 0.42 | 0.45 | 0.45 | 0.47 | 0.46 | 0.45 | 0.45 | 0.45 | 0.47 | |||||||
| Intel Corp. | — | 0.58 | 0.40 | 0.41 | 0.44 | 0.52 | 0.50 | 0.50 | 0.50 | 0.46 | 0.49 | 0.47 | 0.48 | 0.49 | 0.51 | 0.41 | 0.40 | 0.35 | 0.36 | — | — | — | — | |||||||
| KLA Corp. | 1.01 | 1.08 | 1.18 | 1.25 | 1.47 | 1.64 | 1.86 | 1.97 | 2.14 | 1.94 | 1.97 | 2.02 | 2.20 | 2.35 | 3.00 | 4.75 | 0.91 | 0.85 | 0.89 | — | — | — | — | |||||||
| Lam Research Corp. | 0.35 | 0.44 | 0.44 | 0.45 | 0.47 | 0.57 | 0.59 | 0.58 | 0.62 | 0.61 | 0.62 | 0.61 | 0.60 | 0.60 | 0.67 | 0.80 | 0.83 | 0.77 | 0.86 | — | — | — | — | |||||||
| Marvell Technology Inc. | 0.32 | 0.33 | 0.32 | 0.30 | 0.31 | 0.29 | 0.29 | 0.28 | 0.27 | 0.27 | 0.30 | 0.29 | 0.29 | 0.30 | 0.29 | 0.29 | 0.29 | 0.32 | 0.33 | — | — | — | — | |||||||
| Micron Technology Inc. | 0.06 | 0.14 | 0.20 | 0.27 | 0.31 | 0.30 | 0.29 | 0.30 | 0.30 | 0.31 | 0.31 | 0.30 | 0.29 | 0.26 | 0.21 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | |||||||
| NVIDIA Corp. | 0.07 | 0.08 | 0.10 | 0.11 | 0.13 | 0.15 | 0.20 | 0.23 | 0.29 | 0.35 | 0.45 | 0.50 | 0.51 | 0.46 | 0.42 | 0.41 | 0.46 | 0.56 | 0.37 | — | — | — | — | |||||||
| Qualcomm Inc. | 0.55 | 0.56 | 0.64 | 0.70 | 0.54 | 0.53 | 0.54 | 0.56 | 0.59 | 0.63 | 0.67 | 0.71 | 0.75 | 0.81 | 0.90 | 0.86 | 0.97 | 1.18 | 1.39 | 1.58 | 1.92 | 2.12 | 2.13 | |||||||
| Texas Instruments Inc. | — | 0.78 | 0.84 | 0.86 | 0.84 | 0.86 | 0.78 | 0.80 | 0.80 | 0.81 | 0.84 | 0.66 | 0.67 | 0.70 | 0.66 | 0.60 | 0.55 | 0.51 | 0.55 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-Q (reporting date: 2026-02-01), 10-K (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-Q (reporting date: 2025-02-02), 10-K (reporting date: 2024-11-03), 10-Q (reporting date: 2024-08-04), 10-Q (reporting date: 2024-05-05), 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q3 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 59,419 ÷ 99,690 = 0.60
2 Click competitor name to see calculations.
The analysis of the solvency metrics reveals a significant structural shift in the capital composition over the observed period. The financial profile transitioned from a high-leverage state characterized by a debt-to-equity ratio consistently above 1.50 to a more conservative position, ending with a ratio of 0.60. This evolution is marked by a distinct pivot in early 2024, following which the balance sheet underwent substantial expansion and subsequent deleveraging.
- Debt Accumulation and Reduction
- Total debt remained relatively stable between January 2021 and October 2023, fluctuating within a narrow band of approximately 39 billion to 42 billion US dollars. A sharp increase occurred in February 2024, where total debt surged to 75.9 billion US dollars. Following this peak, a consistent downward trend is observed, with debt levels gradually reducing to 59.4 billion US dollars by August 2026, indicating a focused effort toward debt repayment.
- Equity Expansion
- Stockholders' equity exhibited moderate volatility between 20 billion and 24 billion US dollars during the first three years of the period. Similar to the debt trend, a massive expansion occurred in February 2024, with equity jumping to 70.2 billion US dollars. From that point forward, equity maintained a strong upward trajectory, reaching 99.6 billion US dollars by August 2026. This growth in equity significantly outweighed the increase in debt during the 2024 transition, fundamentally altering the solvency profile.
- Debt-to-Equity Ratio Dynamics
- The debt-to-equity ratio remained elevated from January 2021 to October 2023, peaking at 1.89 in July 2022. The structural shift in February 2024 resulted in an immediate compression of the ratio to 1.08, despite the absolute increase in debt, due to the proportional surge in equity. Between February 2024 and August 2026, the ratio declined steadily from 1.08 to 0.60, reflecting a systematic improvement in solvency and a reduced reliance on borrowed capital relative to shareholder investments.
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Debt to Capital
Broadcom Inc., debt to capital calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Short-term debt | 2,252) | 2,252) | 2,252) | 3,152) | 1,399) | 5,531) | 5,653) | 1,271) | 3,161) | 2,426) | 2,433) | 1,608) | 1,119) | 1,117) | 1,115) | 440) | 304) | 302) | 300) | 290) | 279) | 278) | 864) | |||||||
| Long-term debt | 57,167) | 62,655) | 63,805) | 61,984) | 62,830) | 61,751) | 60,926) | 66,295) | 66,798) | 71,590) | 73,468) | 37,621) | 38,222) | 38,194) | 38,167) | 39,075) | 39,191) | 39,164) | 39,205) | 39,440) | 40,178) | 40,160) | 41,068) | |||||||
| Total debt | 59,419) | 64,907) | 66,057) | 65,136) | 64,229) | 67,282) | 66,579) | 67,566) | 69,959) | 74,016) | 75,901) | 39,229) | 39,341) | 39,311) | 39,282) | 39,515) | 39,495) | 39,466) | 39,505) | 39,730) | 40,457) | 40,438) | 41,932) | |||||||
| Stockholders’ equity | 99,690) | 87,691) | 79,872) | 81,292) | 73,277) | 69,586) | 69,789) | 67,678) | 65,651) | 69,961) | 70,284) | 23,988) | 22,079) | 22,007) | 23,310) | 22,709) | 20,876) | 20,963) | 22,968) | 24,962) | 24,340) | 23,939) | 23,973) | |||||||
| Total capital | 159,109) | 152,598) | 145,929) | 146,428) | 137,506) | 136,868) | 136,368) | 135,244) | 135,610) | 143,977) | 146,185) | 63,217) | 61,420) | 61,318) | 62,592) | 62,224) | 60,371) | 60,429) | 62,473) | 64,692) | 64,797) | 64,377) | 65,905) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | 0.37 | 0.43 | 0.45 | 0.44 | 0.47 | 0.49 | 0.49 | 0.50 | 0.52 | 0.51 | 0.52 | 0.62 | 0.64 | 0.64 | 0.63 | 0.64 | 0.65 | 0.65 | 0.63 | 0.61 | 0.62 | 0.63 | 0.64 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.07 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.03 | — | — | — | — | |||||||
| Analog Devices Inc. | 0.21 | 0.20 | 0.20 | 0.20 | 0.20 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.16 | 0.16 | 0.16 | 0.16 | 0.15 | 0.15 | 0.15 | 0.14 | 0.14 | 0.15 | 0.30 | 0.30 | 0.30 | |||||||
| Applied Materials Inc. | 0.20 | 0.21 | 0.23 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.23 | 0.24 | 0.25 | 0.27 | 0.29 | 0.30 | 0.31 | 0.31 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.32 | |||||||
| Intel Corp. | — | 0.37 | 0.29 | 0.29 | 0.30 | 0.34 | 0.33 | 0.34 | 0.34 | 0.32 | 0.33 | 0.32 | 0.32 | 0.33 | 0.34 | 0.29 | 0.28 | 0.26 | 0.27 | — | — | — | — | |||||||
| KLA Corp. | 0.50 | 0.52 | 0.54 | 0.56 | 0.59 | 0.62 | 0.65 | 0.66 | 0.68 | 0.66 | 0.66 | 0.67 | 0.69 | 0.70 | 0.75 | 0.83 | 0.48 | 0.46 | 0.47 | — | — | — | — | |||||||
| Lam Research Corp. | 0.26 | 0.31 | 0.31 | 0.31 | 0.32 | 0.36 | 0.37 | 0.37 | 0.38 | 0.38 | 0.38 | 0.38 | 0.37 | 0.38 | 0.40 | 0.44 | 0.45 | 0.44 | 0.46 | — | — | — | — | |||||||
| Marvell Technology Inc. | 0.24 | 0.25 | 0.24 | 0.23 | 0.23 | 0.23 | 0.22 | 0.22 | 0.22 | 0.21 | 0.23 | 0.22 | 0.22 | 0.23 | 0.23 | 0.22 | 0.23 | 0.24 | 0.25 | — | — | — | — | |||||||
| Micron Technology Inc. | 0.05 | 0.12 | 0.17 | 0.21 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.23 | 0.23 | 0.21 | 0.17 | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | |||||||
| NVIDIA Corp. | 0.07 | 0.08 | 0.09 | 0.10 | 0.11 | 0.13 | 0.16 | 0.18 | 0.23 | 0.26 | 0.31 | 0.33 | 0.34 | 0.31 | 0.29 | 0.29 | 0.32 | 0.36 | 0.27 | — | — | — | — | |||||||
| Qualcomm Inc. | 0.36 | 0.36 | 0.39 | 0.41 | 0.35 | 0.35 | 0.35 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | 0.43 | 0.45 | 0.47 | 0.46 | 0.49 | 0.54 | 0.58 | 0.61 | 0.66 | 0.68 | 0.68 | |||||||
| Texas Instruments Inc. | — | 0.44 | 0.46 | 0.46 | 0.46 | 0.46 | 0.44 | 0.45 | 0.45 | 0.45 | 0.46 | 0.40 | 0.40 | 0.41 | 0.40 | 0.37 | 0.35 | 0.34 | 0.36 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-Q (reporting date: 2026-02-01), 10-K (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-Q (reporting date: 2025-02-02), 10-K (reporting date: 2024-11-03), 10-Q (reporting date: 2024-08-04), 10-Q (reporting date: 2024-05-05), 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 59,419 ÷ 159,109 = 0.37
2 Click competitor name to see calculations.
The analyzed period reveals a significant transformation in the capital structure, characterized by an initial phase of stability followed by a substantial expansion of the balance sheet and a subsequent trend of deleveraging.
- Debt to Capital Ratio Trends
- Between January 2021 and October 2023, the debt to capital ratio remained relatively stagnant, fluctuating within a tight range between 0.61 and 0.65. A pivotal shift occurred in February 2024, where the ratio dropped to 0.52. From that point forward, a consistent downward trajectory is observed, with the ratio declining steadily to 0.37 by August 2026, indicating a marked improvement in solvency and a reduced reliance on debt relative to total capital.
- Total Debt Dynamics
- Total debt levels were stable at approximately 39 to 42 billion USD from early 2021 through late 2023. A sharp increase was recorded in February 2024, with debt peaking at 75.9 billion USD. This peak was followed by a sustained period of debt reduction, bringing the total debt down to 59.4 billion USD by August 2026. This suggests a strategic effort to pay down obligations following a period of significant borrowing.
- Total Capital Expansion
- Total capital exhibited a dramatic increase in February 2024, rising from 63.2 billion USD in October 2023 to 146.2 billion USD. Unlike the total debt, which trended downward after this spike, total capital continued a general upward trend, reaching 159.1 billion USD by August 2026. The divergence between decreasing debt and increasing total capital is the primary driver behind the significant reduction in the debt to capital ratio during the latter half of the observed period.
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Debt to Assets
Broadcom Inc., debt to assets calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Short-term debt | 2,252) | 2,252) | 2,252) | 3,152) | 1,399) | 5,531) | 5,653) | 1,271) | 3,161) | 2,426) | 2,433) | 1,608) | 1,119) | 1,117) | 1,115) | 440) | 304) | 302) | 300) | 290) | 279) | 278) | 864) | |||||||
| Long-term debt | 57,167) | 62,655) | 63,805) | 61,984) | 62,830) | 61,751) | 60,926) | 66,295) | 66,798) | 71,590) | 73,468) | 37,621) | 38,222) | 38,194) | 38,167) | 39,075) | 39,191) | 39,164) | 39,205) | 39,440) | 40,178) | 40,160) | 41,068) | |||||||
| Total debt | 59,419) | 64,907) | 66,057) | 65,136) | 64,229) | 67,282) | 66,579) | 67,566) | 69,959) | 74,016) | 75,901) | 39,229) | 39,341) | 39,311) | 39,282) | 39,515) | 39,495) | 39,466) | 39,505) | 39,730) | 40,457) | 40,438) | 41,932) | |||||||
| Total assets | 188,148) | 179,158) | 169,903) | 171,092) | 165,621) | 164,630) | 165,358) | 165,645) | 167,966) | 175,211) | 177,870) | 72,861) | 71,595) | 71,667) | 72,976) | 73,249) | 71,326) | 71,719) | 73,224) | 75,570) | 75,880) | 75,524) | 76,972) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | 0.32 | 0.36 | 0.39 | 0.38 | 0.39 | 0.41 | 0.40 | 0.41 | 0.42 | 0.42 | 0.43 | 0.54 | 0.55 | 0.55 | 0.54 | 0.54 | 0.55 | 0.55 | 0.54 | 0.53 | 0.53 | 0.54 | 0.54 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.06 | 0.02 | 0.02 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | — | — | — | — | |||||||
| Analog Devices Inc. | 0.19 | 0.18 | 0.18 | 0.18 | 0.18 | 0.15 | 0.16 | 0.16 | 0.17 | 0.16 | 0.14 | 0.14 | 0.14 | 0.14 | 0.13 | 0.13 | 0.12 | 0.12 | 0.12 | 0.13 | 0.24 | 0.24 | 0.24 | |||||||
| Applied Materials Inc. | 0.15 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.18 | 0.19 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | |||||||
| Intel Corp. | — | 0.25 | 0.22 | 0.22 | 0.23 | 0.26 | 0.26 | 0.25 | 0.26 | 0.26 | 0.27 | 0.26 | 0.26 | 0.26 | 0.27 | 0.23 | 0.23 | 0.21 | 0.21 | — | — | — | — | |||||||
| KLA Corp. | 0.35 | 0.35 | 0.36 | 0.37 | 0.39 | 0.39 | 0.42 | 0.43 | 0.44 | 0.41 | 0.42 | 0.42 | 0.43 | 0.45 | 0.48 | 0.53 | 0.31 | 0.29 | 0.31 | — | — | — | — | |||||||
| Lam Research Corp. | 0.18 | 0.21 | 0.20 | 0.21 | 0.22 | 0.25 | 0.26 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.26 | 0.26 | 0.27 | 0.29 | 0.30 | 0.30 | 0.32 | — | — | — | — | |||||||
| Marvell Technology Inc. | 0.21 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | 0.20 | 0.19 | 0.19 | 0.21 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.23 | 0.23 | — | — | — | — | |||||||
| Micron Technology Inc. | 0.04 | 0.10 | 0.14 | 0.18 | 0.20 | 0.20 | 0.19 | 0.19 | 0.20 | 0.21 | 0.21 | 0.21 | 0.20 | 0.18 | 0.15 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | |||||||
| NVIDIA Corp. | 0.05 | 0.06 | 0.07 | 0.08 | 0.09 | 0.10 | 0.13 | 0.15 | 0.18 | 0.20 | 0.25 | 0.27 | 0.27 | 0.25 | 0.24 | 0.25 | 0.27 | 0.31 | 0.23 | — | — | — | — | |||||||
| Qualcomm Inc. | 0.27 | 0.27 | 0.28 | 0.30 | 0.27 | 0.26 | 0.26 | 0.27 | 0.28 | 0.29 | 0.30 | 0.30 | 0.32 | 0.33 | 0.34 | 0.32 | 0.33 | 0.35 | 0.37 | 0.38 | 0.41 | 0.42 | 0.42 | |||||||
| Texas Instruments Inc. | — | 0.39 | 0.41 | 0.41 | 0.40 | 0.40 | 0.38 | 0.38 | 0.39 | 0.40 | 0.41 | 0.35 | 0.35 | 0.36 | 0.35 | 0.32 | 0.30 | 0.29 | 0.31 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-Q (reporting date: 2026-02-01), 10-K (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-Q (reporting date: 2025-02-02), 10-K (reporting date: 2024-11-03), 10-Q (reporting date: 2024-08-04), 10-Q (reporting date: 2024-05-05), 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 59,419 ÷ 188,148 = 0.32
2 Click competitor name to see calculations.
The analysis of the solvency profile reveals two distinct operational phases characterized by an initial period of stability followed by a significant balance sheet expansion and a subsequent trend of deleveraging.
- Initial Stability Phase (January 2021 – October 2023)
- During this period, the debt to assets ratio remained highly consistent, fluctuating within a narrow range between 0.53 and 0.55. Total debt was maintained between approximately 39.2 billion and 41.9 billion US dollars, while total assets remained relatively stagnant between 71.5 billion and 76.9 billion US dollars. This indicates a period of stable leverage with no significant structural changes to the capital composition.
- Balance Sheet Expansion (October 2023 – February 2024)
- A substantial shift occurred between October 2023 and February 2024, marked by a sharp increase in both total assets and total debt. Total assets expanded from 72.8 billion to 177.8 billion US dollars, while total debt increased from 39.2 billion to 75.9 billion US dollars. Notably, because asset growth significantly outpaced the increase in debt, the debt to assets ratio decreased from 0.54 to 0.43, improving the overall solvency position despite the absolute increase in liabilities.
- Deleveraging Trend (February 2024 – August 2026)
- Following the expansion, a consistent downward trend in the debt to assets ratio is observed, falling from 0.43 to a low of 0.32 by August 2026. This improvement is driven by a steady reduction in total debt, which declined from 75.9 billion to 59.4 billion US dollars. Concurrently, total assets demonstrated a general upward trajectory, growing from 165.3 billion in early 2024 to 188.1 billion US dollars by August 2026. The combination of aggressive debt repayment and asset appreciation resulted in a strengthened solvency position over this multi-year period.
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Financial Leverage
Broadcom Inc., financial leverage calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Total assets | 188,148) | 179,158) | 169,903) | 171,092) | 165,621) | 164,630) | 165,358) | 165,645) | 167,966) | 175,211) | 177,870) | 72,861) | 71,595) | 71,667) | 72,976) | 73,249) | 71,326) | 71,719) | 73,224) | 75,570) | 75,880) | 75,524) | 76,972) | |||||||
| Stockholders’ equity | 99,690) | 87,691) | 79,872) | 81,292) | 73,277) | 69,586) | 69,789) | 67,678) | 65,651) | 69,961) | 70,284) | 23,988) | 22,079) | 22,007) | 23,310) | 22,709) | 20,876) | 20,963) | 22,968) | 24,962) | 24,340) | 23,939) | 23,973) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | 1.89 | 2.04 | 2.13 | 2.10 | 2.26 | 2.37 | 2.37 | 2.45 | 2.56 | 2.50 | 2.53 | 3.04 | 3.24 | 3.26 | 3.13 | 3.23 | 3.42 | 3.42 | 3.19 | 3.03 | 3.12 | 3.15 | 3.21 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 1.26 | 1.24 | 1.22 | 1.26 | 1.25 | 1.24 | 1.20 | 1.22 | 1.20 | 1.21 | 1.21 | 1.23 | 1.23 | 1.24 | 1.23 | 1.24 | 1.22 | 1.21 | — | — | — | — | |||||||
| Analog Devices Inc. | 1.44 | 1.42 | 1.42 | 1.42 | 1.41 | 1.35 | 1.37 | 1.37 | 1.38 | 1.39 | 1.36 | 1.37 | 1.37 | 1.38 | 1.38 | 1.38 | 1.37 | 1.37 | 1.37 | 1.38 | 1.76 | 1.77 | 1.77 | |||||||
| Applied Materials Inc. | 1.70 | 1.68 | 1.73 | 1.78 | 1.75 | 1.77 | 1.79 | 1.81 | 1.79 | 1.76 | 1.81 | 1.88 | 2.01 | 2.06 | 2.08 | 2.19 | 2.17 | 2.20 | 2.14 | 2.11 | 2.03 | 2.01 | 2.03 | |||||||
| Intel Corp. | — | 2.31 | 1.84 | 1.85 | 1.92 | 1.97 | 1.93 | 1.98 | 1.94 | 1.79 | 1.82 | 1.81 | 1.85 | 1.84 | 1.89 | 1.80 | 1.75 | 1.68 | 1.71 | — | — | — | — | |||||||
| KLA Corp. | 2.89 | 3.06 | 3.27 | 3.42 | 3.79 | 4.19 | 4.41 | 4.58 | 4.83 | 4.69 | 4.73 | 4.82 | 5.10 | 5.27 | 6.24 | 8.99 | 2.95 | 2.89 | 2.89 | — | — | — | — | |||||||
| Lam Research Corp. | 1.96 | 2.11 | 2.15 | 2.16 | 2.10 | 2.25 | 2.31 | 2.20 | 2.28 | 2.28 | 2.30 | 2.29 | 2.29 | 2.31 | 2.53 | 2.74 | 2.75 | 2.58 | 2.67 | — | — | — | — | |||||||
| Marvell Technology Inc. | 1.54 | 1.53 | 1.50 | 1.50 | 1.47 | 1.43 | 1.42 | 1.43 | 1.43 | 1.41 | 1.44 | 1.44 | 1.45 | 1.43 | 1.43 | 1.41 | 1.40 | 1.41 | 1.43 | — | — | — | — | |||||||
| Micron Technology Inc. | 1.33 | 1.40 | 1.46 | 1.53 | 1.54 | 1.50 | 1.53 | 1.54 | 1.50 | 1.50 | 1.49 | 1.46 | 1.45 | 1.41 | 1.38 | 1.33 | 1.32 | 1.33 | 1.33 | 1.34 | 1.32 | 1.33 | 1.35 | |||||||
| NVIDIA Corp. | 1.36 | 1.41 | 1.49 | 1.41 | 1.46 | 1.47 | 1.57 | 1.53 | 1.63 | 1.80 | 1.81 | 1.86 | 1.90 | 1.82 | 1.72 | 1.66 | 1.71 | 1.83 | 1.64 | — | — | — | — | |||||||
| Qualcomm Inc. | 2.07 | 2.09 | 2.30 | 2.36 | 2.02 | 2.00 | 2.07 | 2.10 | 2.14 | 2.17 | 2.26 | 2.37 | 2.37 | 2.46 | 2.66 | 2.72 | 2.93 | 3.32 | 3.78 | 4.14 | 4.74 | 5.01 | 5.08 | |||||||
| Texas Instruments Inc. | — | 1.99 | 2.05 | 2.13 | 2.11 | 2.13 | 2.06 | 2.10 | 2.05 | 2.04 | 2.05 | 1.91 | 1.90 | 1.94 | 1.92 | 1.87 | 1.80 | 1.75 | 1.80 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-Q (reporting date: 2026-02-01), 10-K (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-Q (reporting date: 2025-02-02), 10-K (reporting date: 2024-11-03), 10-Q (reporting date: 2024-08-04), 10-Q (reporting date: 2024-05-05), 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q3 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 188,148 ÷ 99,690 = 1.89
2 Click competitor name to see calculations.
The financial leverage ratio exhibits a significant long-term downward trend, transitioning from a period of relative stability at higher levels to a structural decline following a major balance sheet expansion. Over the analyzed period, the ratio decreased from a peak of 3.42 in mid-2022 to a low of 1.89 by August 2026, indicating a substantial reduction in the reliance on debt relative to equity.
- Initial Stability Period (January 2021 – October 2023)
- During this interval, the financial leverage ratio remained relatively range-bound, fluctuating between 3.03 and 3.42. Total assets were stable, generally hovering between 71 billion and 77 billion US dollars, while stockholders' equity remained largely flat between 20 billion and 25 billion US dollars. The peak leverage observed in May and July 2022 (3.42) coincided with a temporary dip in stockholders' equity to approximately 20.9 billion US dollars.
- Balance Sheet Expansion (October 2023 – February 2024)
- A fundamental shift in the capital structure occurred between October 2023 and February 2024. Total assets increased abruptly from 72.86 billion to 177.87 billion US dollars. This expansion was accompanied by a sharp rise in stockholders' equity, which grew from 23.99 billion to 70.28 billion US dollars. This simultaneous increase in both assets and equity led to a structural drop in the financial leverage ratio, which fell to 2.53 by February 2024.
- Deleveraging Phase (February 2024 – August 2026)
- Following the expansion, a consistent trend of deleveraging is observed. While total assets experienced some volatility—dipping to 164.63 billion US dollars in February 2025 before climbing to 188.15 billion US dollars by August 2026—stockholders' equity maintained a strong upward trajectory. Equity grew from 65.65 billion US dollars in May 2024 to 99.69 billion US dollars by the end of the period. This growth in the equity base outpaced asset growth, driving the financial leverage ratio down to its lowest point of 1.89.
The overall trajectory indicates a strategic shift toward a more conservative solvency profile. The transition from a leverage ratio exceeding 3.0 to one below 2.0 suggests a strengthened equity position and a reduced financial risk profile over the analyzed timeframe.
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Interest Coverage
Broadcom Inc., interest coverage calculation (quarterly data)
| Aug 2, 2026 | May 3, 2026 | Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) | 13,088) | 9,310) | 7,349) | 8,518) | 4,140) | 4,965) | 5,503) | 4,324) | (1,875) | 2,121) | 1,325) | 3,524) | 3,303) | 3,481) | 3,774) | 3,359) | 3,074) | 2,590) | 2,472) | 1,989) | 1,876) | 1,493) | 1,378) | |||||||
| Less: Income (loss) from discontinued operations, net of income taxes | —) | —) | —) | —) | —) | —) | —) | 119) | (443) | —) | 51) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Add: Income tax expense | 2,187) | 820) | 846) | (1,649) | 1,145) | 120) | (13) | (442) | 4,238) | (116) | 68) | 443) | 271) | 235) | 66) | 261) | 263) | 200) | 215) | 180) | (150) | (7) | 6) | |||||||
| Add: Interest expense | 778) | 776) | 801) | 761) | 807) | 769) | 873) | 916) | 1,064) | 1,047) | 926) | 405) | 406) | 405) | 406) | 406) | 406) | 518) | 407) | 434) | 415) | 466) | 570) | |||||||
| Earnings before interest and tax (EBIT) | 16,053) | 10,906) | 8,996) | 7,630) | 6,092) | 5,854) | 6,363) | 4,679) | 3,870) | 3,052) | 2,268) | 4,372) | 3,980) | 4,121) | 4,246) | 4,026) | 3,743) | 3,308) | 3,094) | 2,603) | 2,141) | 1,952) | 1,954) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Interest coverage1 | 13.99 | 10.69 | 9.11 | 8.08 | 6.83 | 5.73 | 4.61 | 3.51 | 3.94 | 4.91 | 6.88 | 10.31 | 10.09 | 9.94 | 8.83 | 8.16 | 7.22 | 6.28 | 5.69 | 4.59 | 4.06 | 3.40 | 2.82 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 52.48 | 34.41 | 32.80 | 27.25 | 25.11 | 32.99 | 22.98 | 15.91 | 10.78 | 7.65 | 5.79 | 1.05 | -2.15 | 2.73 | 14.61 | 33.91 | 69.08 | 104.42 | — | — | — | — | |||||||
| Analog Devices Inc. | 14.41 | 12.48 | 10.80 | 9.54 | 8.50 | 7.29 | 6.31 | 6.52 | 6.89 | 8.74 | 11.83 | 14.63 | 17.96 | 19.23 | 19.42 | 16.46 | 10.14 | 9.06 | 7.26 | 8.19 | 11.64 | 10.46 | 9.14 | |||||||
| Applied Materials Inc. | 39.73 | 38.76 | 35.60 | 35.46 | 34.71 | 32.79 | 32.62 | 34.00 | 36.27 | 36.06 | 34.86 | 33.42 | 32.62 | 33.39 | 34.20 | 34.33 | 34.58 | 34.95 | 33.14 | 29.69 | 26.24 | 21.94 | 19.19 | |||||||
| KLA Corp. | 19.94 | 19.31 | 17.75 | 16.37 | 14.66 | 12.56 | 11.71 | 11.25 | 11.00 | 11.51 | 13.03 | 13.76 | 15.81 | 18.22 | 20.31 | 22.76 | 21.81 | 20.60 | 17.91 | — | — | — | — | |||||||
| Marvell Technology Inc. | 15.56 | 0.48 | -1.54 | -3.72 | -5.00 | -2.06 | -2.49 | -2.58 | -2.33 | -1.20 | 0.00 | 1.50 | 1.71 | 0.85 | -1.34 | -2.47 | -3.06 | -3.40 | -2.77 | — | — | — | — | |||||||
| Micron Technology Inc. | 257.85 | 80.25 | 32.36 | 21.26 | 16.43 | 12.88 | 9.29 | 3.19 | -2.13 | -7.02 | -13.14 | -13.58 | -7.73 | 10.11 | 36.19 | 51.66 | 58.47 | 51.74 | 45.03 | 35.18 | 24.82 | 19.35 | 17.83 | |||||||
| NVIDIA Corp. | 471.72 | 408.49 | 361.39 | 341.19 | 293.83 | 244.51 | 192.72 | 132.59 | 82.40 | 43.66 | 18.63 | 16.96 | 23.23 | 31.40 | 39.65 | 43.12 | 38.65 | 34.29 | 26.81 | — | — | — | — | |||||||
| Qualcomm Inc. | 17.30 | 18.26 | 19.77 | 20.07 | 19.26 | 18.26 | 17.14 | 15.83 | 14.25 | 13.43 | 12.44 | 11.72 | 15.28 | 22.27 | 26.92 | 31.61 | 31.54 | 24.20 | 21.71 | 19.38 | 18.60 | 16.10 | 13.40 | |||||||
| Texas Instruments Inc. | — | 13.25 | 12.06 | 11.52 | 11.71 | 11.86 | 11.45 | 11.73 | 12.85 | 14.57 | 17.87 | 22.01 | 26.51 | 33.49 | 42.10 | 47.88 | 51.88 | 52.00 | 51.03 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-08-02), 10-Q (reporting date: 2026-05-03), 10-Q (reporting date: 2026-02-01), 10-K (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-Q (reporting date: 2025-02-02), 10-K (reporting date: 2024-11-03), 10-Q (reporting date: 2024-08-04), 10-Q (reporting date: 2024-05-05), 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (16,053 + 10,906 + 8,996 + 7,630)
÷ (778 + 776 + 801 + 761)
= 13.99
2 Click competitor name to see calculations.
The overall solvency profile exhibits a strong long-term upward trajectory in interest coverage, characterized by substantial growth in operational earnings that has consistently outpaced the costs of debt servicing, despite a period of volatility in 2024.
- Earnings Before Interest and Tax (EBIT)
- Operational profitability demonstrates aggressive growth over the analyzed period. Starting at 1,954 million USD in January 2021, EBIT experienced a steady climb to 4,372 million USD by October 2023. A significant temporary contraction occurred in February 2024, where earnings fell to 2,268 million USD. However, this was followed by a period of rapid acceleration, culminating in a peak of 16,053 million USD by August 2026, representing a massive expansion in the company's capacity to generate income from core operations.
- Interest Expense
- Debt servicing costs remained relatively stable and low between January 2021 and October 2023, generally fluctuating between 405 million USD and 570 million USD. A sharp increase is observed starting in February 2024, with expenses spiking to 926 million USD and peaking at 1,064 million USD in May 2024. Following this surge, the interest expense stabilized at a higher baseline, fluctuating between 761 million USD and 807 million USD from February 2025 through August 2026.
- Interest Coverage Ratio
- The interest coverage ratio evolved through three distinct phases. The first phase was one of steady improvement, rising from 2.82 in January 2021 to a peak of 10.31 in October 2023. The second phase was a period of contraction between February 2024 and November 2024, where the ratio declined to a low of 3.51, driven by the simultaneous occurrence of lower EBIT and higher interest expenses. The final phase is characterized by a robust recovery and acceleration, with the ratio climbing from 4.61 in February 2025 to an all-time high of 13.99 by August 2026.
The data indicates that the company has successfully mitigated the impact of increased borrowing costs through exceptional growth in operating income. The final coverage ratio of 13.99 suggests a highly secure solvency position, providing a substantial margin of safety for the fulfillment of interest obligations.
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