Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Amphenol Corp., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The solvency profile exhibits a consistent strengthening trend between 2019 and 2023, characterized by a systemic reduction in leverage and an improvement in the capacity to service debt obligations.
- Leverage and Capital Structure
- A sustained downward trend is observed across all leverage metrics. The debt to equity ratio decreased from 0.80 in 2019 to 0.52 in 2023, with the most significant decline occurring between 2022 and 2023. Similarly, the debt to capital ratio fell from 0.44 to 0.34, and the debt to assets ratio declined from 0.33 to 0.26. These patterns indicate a strategic shift toward a more equity-heavy capital structure and a reduced dependence on borrowed funds to finance operations.
- Financial Leverage
- Financial leverage has decreased steadily from 2.39 in 2019 to 1.98 in 2023. The reduction below the 2.0 threshold in the final year confirms a decreased reliance on debt for asset acquisition, effectively lowering the overall financial risk profile.
- Debt Service Coverage
- Coverage ratios have expanded significantly over the analyzed period, indicating a heightened ability to meet financial obligations. The interest coverage ratio rose from 13.72 in 2019 to a peak of 20.22 in 2022, before settling at 18.60 in 2023. Parallelly, the fixed charge coverage ratio increased from 7.95 to 10.21 over the same timeframe. Despite a slight softening in 2023, these figures demonstrate a substantially improved margin of safety compared to the 2019 baseline.
In summary, the analysis reveals a transition toward a more conservative financial position. The simultaneous reduction in debt-to-equity and debt-to-asset ratios, coupled with the increase in coverage ratios, indicates an enhanced solvency position and a reduced vulnerability to interest rate volatility or operational downturns.
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Debt to Equity
Amphenol Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 353,800) | 2,700) | 4,000) | 230,300) | 403,300) | |
| Long-term debt, less current portion | 3,983,500) | 4,575,000) | 4,795,900) | 3,636,200) | 3,203,400) | |
| Total debt | 4,337,300) | 4,577,700) | 4,799,900) | 3,866,500) | 3,606,700) | |
| Stockholders’ equity attributable to Amphenol Corporation | 8,346,500) | 7,015,600) | 6,302,000) | 5,384,900) | 4,530,300) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.52 | 0.65 | 0.76 | 0.72 | 0.80 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Apple Inc. | 1.80 | 2.39 | 1.99 | 1.73 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Cisco Systems Inc. | 0.19 | 0.24 | 0.28 | — | — | |
| Dell Technologies Inc. | — | — | 19.36 | — | — | |
| Lumentum Holdings Inc. | 2.07 | 1.00 | 0.60 | — | — | |
| Super Micro Computer Inc. | 0.15 | 0.42 | 0.09 | — | — | |
| Debt to Equity, Sector | ||||||
| Technology Hardware & Equipment | 1.34 | 1.65 | 1.64 | — | — | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.66 | 0.70 | 0.83 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity attributable to Amphenol Corporation
= 4,337,300 ÷ 8,346,500 = 0.52
2 Click competitor name to see calculations.
The solvency profile from 2019 to 2023 reflects a strategic shift toward a more conservative capital structure, characterized by a substantial increase in equity and a controlled management of debt obligations.
- Total Debt Dynamics
- Total debt experienced an initial upward trend, rising from US$ 3,606,700 thousand in 2019 to a peak of US$ 4,799,900 thousand in 2021. Following this peak, a steady reduction occurred over the subsequent two years, with debt levels falling to US$ 4,337,300 thousand by December 31, 2023. This indicates a phase of debt accumulation followed by a period of deleveraging.
- Equity Accumulation
- Stockholders’ equity attributable to the corporation demonstrated consistent and uninterrupted growth throughout the five-year period. Equity increased from US$ 4,530,300 thousand in 2019 to US$ 8,346,500 thousand in 2023. This sustained growth in the equity base suggests strong retained earnings or capital infusions, which have significantly bolstered the company's financial cushion.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio confirms a strengthening solvency position, moving from 0.80 in 2019 to 0.52 in 2023. While a brief increase to 0.76 was observed in 2021—corresponding with the peak in total debt—the subsequent decline to 0.52 represents a significant reduction in financial leverage. The overall trend indicates that the organization is increasingly financing its operations through equity rather than borrowed funds, thereby reducing financial risk and improving its long-term solvency outlook.
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Debt to Equity (including Operating Lease Liability)
Amphenol Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 353,800) | 2,700) | 4,000) | 230,300) | 403,300) | |
| Long-term debt, less current portion | 3,983,500) | 4,575,000) | 4,795,900) | 3,636,200) | 3,203,400) | |
| Total debt | 4,337,300) | 4,577,700) | 4,799,900) | 3,866,500) | 3,606,700) | |
| Operating lease liabilities (included in Other accrued expenses) | 91,600) | 85,200) | 70,600) | 68,000) | 54,000) | |
| Operating lease liabilities (included in Other long-term liabilities) | 212,100) | 208,500) | 180,400) | 161,100) | 145,400) | |
| Total debt (including operating lease liability) | 4,641,000) | 4,871,400) | 5,050,900) | 4,095,600) | 3,806,100) | |
| Stockholders’ equity attributable to Amphenol Corporation | 8,346,500) | 7,015,600) | 6,302,000) | 5,384,900) | 4,530,300) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.56 | 0.69 | 0.80 | 0.76 | 0.84 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 1.99 | 2.61 | 2.16 | 1.87 | — | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | — | — | |
| Cisco Systems Inc. | 0.21 | 0.27 | 0.31 | — | — | |
| Dell Technologies Inc. | — | — | 20.25 | — | — | |
| Lumentum Holdings Inc. | 2.12 | 1.03 | 0.63 | — | — | |
| Super Micro Computer Inc. | 0.16 | 0.44 | 0.11 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 1.47 | 1.79 | 1.76 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.72 | 0.76 | 0.90 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity attributable to Amphenol Corporation
= 4,641,000 ÷ 8,346,500 = 0.56
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a strengthening financial position between 2019 and 2023, characterized by a consistent increase in equity and a strategic reduction in total liabilities relative to that equity.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited an upward trajectory from 2019 to 2021, peaking at 5,050,900 thousand US dollars. Following this peak, a sustained reduction in debt was observed over the subsequent two years, with the balance decreasing to 4,641,000 thousand US dollars by December 31, 2023.
- Equity Growth Analysis
- Stockholders' equity attributable to the corporation showed uninterrupted growth throughout the five-year period. Equity rose from 4,530,300 thousand US dollars in 2019 to 8,346,500 thousand US dollars in 2023. This consistent expansion of the equity base indicates strong internal capital generation and a growing cushion for creditors.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio reflects a general downward trend, falling from 0.84 in 2019 to 0.56 in 2023. Although a slight increase to 0.80 occurred in 2021—corresponding with the peak in total debt—the ratio subsequently declined sharply. This trajectory signifies a shift toward a more conservative capital structure and a reduced reliance on leverage to fund operations and growth.
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Debt to Capital
Amphenol Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 353,800) | 2,700) | 4,000) | 230,300) | 403,300) | |
| Long-term debt, less current portion | 3,983,500) | 4,575,000) | 4,795,900) | 3,636,200) | 3,203,400) | |
| Total debt | 4,337,300) | 4,577,700) | 4,799,900) | 3,866,500) | 3,606,700) | |
| Stockholders’ equity attributable to Amphenol Corporation | 8,346,500) | 7,015,600) | 6,302,000) | 5,384,900) | 4,530,300) | |
| Total capital | 12,683,800) | 11,593,300) | 11,101,900) | 9,251,400) | 8,137,000) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.34 | 0.39 | 0.43 | 0.42 | 0.44 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Apple Inc. | 0.64 | 0.70 | 0.67 | 0.63 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Cisco Systems Inc. | 0.16 | 0.19 | 0.22 | — | — | |
| Dell Technologies Inc. | 1.12 | 1.07 | 0.95 | — | — | |
| Lumentum Holdings Inc. | 0.67 | 0.50 | 0.37 | — | — | |
| Super Micro Computer Inc. | 0.13 | 0.30 | 0.08 | — | — | |
| Debt to Capital, Sector | ||||||
| Technology Hardware & Equipment | 0.57 | 0.62 | 0.62 | — | — | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.40 | 0.41 | 0.45 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,337,300 ÷ 12,683,800 = 0.34
2 Click competitor name to see calculations.
An evaluation of solvency metrics from 2019 to 2023 reveals a strengthening financial position characterized by a consistent expansion of the total capital base and a simultaneous reduction in relative debt dependency.
- Total Debt Trends
- Total debt experienced an upward trajectory between 2019 and 2021, reaching a peak of 4,799,900 thousand US$. Following this period, a consistent deleveraging trend was observed, with debt levels declining to 4,337,300 thousand US$ by December 31, 2023.
- Total Capital Expansion
- Total capital demonstrated uninterrupted growth throughout the analyzed period, rising from 8,137,000 thousand US$ in 2019 to 12,683,800 thousand US$ in 2023. This steady increase indicates a significant broadening of the funding base over the five-year duration.
- Debt to Capital Ratio Analysis
- The debt to capital ratio exhibits an overall downward trend, decreasing from 0.44 in 2019 to 0.34 in 2023. While the ratio remained relatively stable through 2021, a more pronounced decline occurred in 2022 and 2023. This shift suggests a strategic transition toward a more conservative capital structure, where the growth in total capital significantly outpaced the growth of debt, thereby reducing the organization's financial leverage.
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Debt to Capital (including Operating Lease Liability)
Amphenol Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 353,800) | 2,700) | 4,000) | 230,300) | 403,300) | |
| Long-term debt, less current portion | 3,983,500) | 4,575,000) | 4,795,900) | 3,636,200) | 3,203,400) | |
| Total debt | 4,337,300) | 4,577,700) | 4,799,900) | 3,866,500) | 3,606,700) | |
| Operating lease liabilities (included in Other accrued expenses) | 91,600) | 85,200) | 70,600) | 68,000) | 54,000) | |
| Operating lease liabilities (included in Other long-term liabilities) | 212,100) | 208,500) | 180,400) | 161,100) | 145,400) | |
| Total debt (including operating lease liability) | 4,641,000) | 4,871,400) | 5,050,900) | 4,095,600) | 3,806,100) | |
| Stockholders’ equity attributable to Amphenol Corporation | 8,346,500) | 7,015,600) | 6,302,000) | 5,384,900) | 4,530,300) | |
| Total capital (including operating lease liability) | 12,987,500) | 11,887,000) | 11,352,900) | 9,480,500) | 8,336,400) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.36 | 0.41 | 0.44 | 0.43 | 0.46 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.67 | 0.72 | 0.68 | 0.65 | — | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | — | — | |
| Cisco Systems Inc. | 0.18 | 0.21 | 0.24 | — | — | |
| Dell Technologies Inc. | 1.11 | 1.06 | 0.95 | — | — | |
| Lumentum Holdings Inc. | 0.68 | 0.51 | 0.39 | — | — | |
| Super Micro Computer Inc. | 0.14 | 0.30 | 0.10 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.59 | 0.64 | 0.64 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.42 | 0.43 | 0.47 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 4,641,000 ÷ 12,987,500 = 0.36
2 Click competitor name to see calculations.
An analysis of solvency metrics from 2019 to 2023 reveals a strengthening financial position characterized by a reduction in leverage relative to the total capital base. The overall trajectory indicates a strategic shift toward a less debt-dependent capital structure.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited an initial increase between 2019 and 2021, rising from 3.81 billion to a peak of 5.05 billion. Following this peak, a consistent downward trend is observed, with debt levels declining to 4.87 billion in 2022 and further to 4.64 billion by the end of 2023.
- Total Capital Expansion
- Total capital, including operating lease liabilities, demonstrated uninterrupted growth throughout the five-year period. The capital base expanded from 8.34 billion in 2019 to 12.99 billion in 2023, representing a substantial increase in the total resources available to the organization.
- Debt to Capital Ratio Interpretation
- The debt to capital ratio shows a general decline, moving from 0.46 in 2019 to 0.36 in 2023. While the ratio remained relatively stable between 2020 and 2021, a marked acceleration in deleveraging occurred between 2022 and 2023. This decline is the result of the simultaneous reduction in total debt and the continuous growth of total capital, signifying a reduced reliance on borrowed funds to finance operations and growth.
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Debt to Assets
Amphenol Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 353,800) | 2,700) | 4,000) | 230,300) | 403,300) | |
| Long-term debt, less current portion | 3,983,500) | 4,575,000) | 4,795,900) | 3,636,200) | 3,203,400) | |
| Total debt | 4,337,300) | 4,577,700) | 4,799,900) | 3,866,500) | 3,606,700) | |
| Total assets | 16,526,400) | 15,326,200) | 14,678,400) | 12,327,300) | 10,815,500) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.26 | 0.30 | 0.33 | 0.31 | 0.33 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Apple Inc. | 0.32 | 0.34 | 0.36 | 0.35 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Cisco Systems Inc. | 0.08 | 0.10 | 0.12 | — | — | |
| Dell Technologies Inc. | 0.33 | 0.29 | 0.39 | — | — | |
| Lumentum Holdings Inc. | 0.61 | 0.45 | 0.33 | — | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.04 | — | — | |
| Debt to Assets, Sector | ||||||
| Technology Hardware & Equipment | 0.27 | 0.29 | 0.32 | — | — | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.26 | 0.29 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,337,300 ÷ 16,526,400 = 0.26
2 Click competitor name to see calculations.
The financial trajectory from 2019 to 2023 reflects a consistent expansion of the asset base and a strategic reduction in the proportion of assets financed through debt, resulting in an improved solvency position.
- Total Asset Expansion
- Total assets demonstrated uninterrupted growth over the analyzed period, rising from US$ 10.82 billion in 2019 to US$ 16.53 billion by December 31, 2023. This steady increase indicates a continuous growth in the company's overall resource base.
- Debt Level Fluctuations
- Total debt followed a non-linear path, increasing from US$ 3.61 billion in 2019 to a peak of US$ 4.80 billion in 2021. Subsequently, a downward trend emerged, with debt levels receding to US$ 4.34 billion by the end of 2023.
- Debt to Assets Ratio Trend
- The debt to assets ratio remained relatively stable through 2021, fluctuating between 0.31 and 0.33. A significant positive shift occurred after 2021, with the ratio declining to 0.30 in 2022 and reaching a period low of 0.26 in 2023. This decline highlights a strengthening solvency profile, as the growth in total assets outpaced the growth of total debt, thereby reducing the organization's financial leverage.
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Debt to Assets (including Operating Lease Liability)
Amphenol Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 353,800) | 2,700) | 4,000) | 230,300) | 403,300) | |
| Long-term debt, less current portion | 3,983,500) | 4,575,000) | 4,795,900) | 3,636,200) | 3,203,400) | |
| Total debt | 4,337,300) | 4,577,700) | 4,799,900) | 3,866,500) | 3,606,700) | |
| Operating lease liabilities (included in Other accrued expenses) | 91,600) | 85,200) | 70,600) | 68,000) | 54,000) | |
| Operating lease liabilities (included in Other long-term liabilities) | 212,100) | 208,500) | 180,400) | 161,100) | 145,400) | |
| Total debt (including operating lease liability) | 4,641,000) | 4,871,400) | 5,050,900) | 4,095,600) | 3,806,100) | |
| Total assets | 16,526,400) | 15,326,200) | 14,678,400) | 12,327,300) | 10,815,500) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.28 | 0.32 | 0.34 | 0.33 | 0.35 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.35 | 0.38 | 0.39 | 0.38 | — | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.01 | — | — | |
| Cisco Systems Inc. | 0.09 | 0.11 | 0.13 | — | — | |
| Dell Technologies Inc. | 0.34 | 0.30 | 0.41 | — | — | |
| Lumentum Holdings Inc. | 0.62 | 0.47 | 0.35 | — | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.05 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.30 | 0.31 | 0.34 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.28 | 0.29 | 0.31 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 4,641,000 ÷ 16,526,400 = 0.28
2 Click competitor name to see calculations.
The solvency profile demonstrates a strengthening financial position over the five-year period from 2019 to 2023. This improvement is characterized by a consistent expansion of the asset base coupled with a strategic reduction in total debt obligations following a peak in 2021.
- Total Asset Growth
- A continuous upward trend is observed in total assets, which grew from US$ 10.82 billion in 2019 to US$ 16.53 billion by December 31, 2023. This steady increase indicates a significant expansion of the company's total resource base over the analyzed period.
- Debt Accumulation and Reduction
- Total debt, including operating lease liabilities, increased for the first three years, peaking at US$ 5.05 billion in 2021. However, a reversal in this trend occurred in 2022 and 2023, with debt levels declining to US$ 4.64 billion, suggesting a period of deleveraging.
- Debt to Assets Ratio Analysis
- The debt to assets ratio shifted from 0.35 in 2019 to a five-year low of 0.28 in 2023. Although a slight increase to 0.34 was noted in 2021, the overall trajectory is downward. This decline reflects a reduced reliance on debt to finance assets and an improved solvency margin, as asset growth consistently outpaced the growth of liabilities.
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Financial Leverage
Amphenol Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 16,526,400) | 15,326,200) | 14,678,400) | 12,327,300) | 10,815,500) | |
| Stockholders’ equity attributable to Amphenol Corporation | 8,346,500) | 7,015,600) | 6,302,000) | 5,384,900) | 4,530,300) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.98 | 2.18 | 2.33 | 2.29 | 2.39 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Apple Inc. | 5.67 | 6.96 | 5.56 | 4.96 | — | |
| Arista Networks Inc. | 1.38 | 1.39 | 1.44 | — | — | |
| Cisco Systems Inc. | 2.30 | 2.36 | 2.36 | — | — | |
| Dell Technologies Inc. | — | — | 49.78 | — | — | |
| Lumentum Holdings Inc. | 3.42 | 2.22 | 1.80 | — | — | |
| Super Micro Computer Inc. | 1.86 | 2.25 | 2.05 | — | — | |
| Financial Leverage, Sector | ||||||
| Technology Hardware & Equipment | 4.94 | 5.71 | 5.12 | — | — | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.53 | 2.65 | 2.87 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity attributable to Amphenol Corporation
= 16,526,400 ÷ 8,346,500 = 1.98
2 Click competitor name to see calculations.
Between 2019 and 2023, a consistent expansion of the balance sheet was observed, characterized by steady growth in both total assets and stockholders' equity. This growth indicates a scaling of operations and a strengthening of the company's capital base over the analyzed period.
- Asset and Equity Growth
- Total assets increased from 10.8 billion US dollars in 2019 to 16.5 billion US dollars in 2023. During the same period, stockholders' equity grew from 4.5 billion US dollars to 8.3 billion US dollars, reflecting a substantial increase in the equity cushion available to support the asset base.
- Financial Leverage Trend
- The financial leverage ratio exhibited a general downward trajectory, declining from 2.39 in 2019 to 1.98 in 2023. Despite a marginal increase in 2021 to 2.33, the overall trend signifies a decreasing reliance on debt to finance the growth of assets.
- Solvency and Risk Profile
- The reduction of the financial leverage ratio to below 2.00 by the end of 2023 suggests an improvement in long-term solvency. The acceleration of equity growth relative to asset growth has effectively lowered the financial risk profile, indicating a more conservative and stable capital structure.
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Interest Coverage
Amphenol Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Amphenol Corporation | 1,928,000) | 1,902,300) | 1,590,800) | 1,203,400) | 1,155,000) | |
| Add: Net income attributable to noncontrolling interest | 17,500) | 14,500) | 10,700) | 9,900) | 9,000) | |
| Less: Income from discontinued operations, net of income taxes | —) | —) | 21,400) | —) | —) | |
| Add: Income tax expense | 509,300) | 550,600) | 409,100) | 313,300) | 331,900) | |
| Add: Interest expense | 139,500) | 128,400) | 115,500) | 115,400) | 117,600) | |
| Earnings before interest and tax (EBIT) | 2,594,300) | 2,595,800) | 2,104,700) | 1,642,000) | 1,613,500) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 18.60 | 20.22 | 18.22 | 14.23 | 13.72 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Apple Inc. | 29.92 | 41.64 | 42.29 | 24.35 | — | |
| Arista Networks Inc. | — | — | — | — | — | |
| Cisco Systems Inc. | 36.87 | 41.21 | 31.56 | — | — | |
| Dell Technologies Inc. | 3.64 | 4.84 | 2.54 | — | — | |
| Lumentum Holdings Inc. | -1.88 | 3.93 | 7.94 | — | — | |
| Super Micro Computer Inc. | 72.55 | 53.71 | 48.81 | — | — | |
| Interest Coverage, Sector | ||||||
| Technology Hardware & Equipment | 25.05 | 29.79 | 24.05 | — | — | |
| Interest Coverage, Industry | ||||||
| Information Technology | 17.37 | 22.18 | 19.66 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,594,300 ÷ 139,500 = 18.60
2 Click competitor name to see calculations.
The analysis of solvency ratios from 2019 to 2023 indicates a strong and stable capacity to meet interest obligations, characterized by significant growth in operational earnings that outpaced the rise in financing costs for most of the period.
- Earnings Before Interest and Tax (EBIT) Trends
- A consistent upward trajectory in EBIT is observed from 2019 to 2022, with earnings increasing from 1.61 billion US$ to approximately 2.60 billion US$. This growth suggests a substantial expansion in operational profitability. In 2023, EBIT remained essentially flat, showing a marginal decrease to 2.59 billion US$, indicating a plateau in operational growth.
- Interest Expense Analysis
- Interest expenses remained relatively stable between 2019 and 2021, fluctuating slightly around 115 million to 117 million US$. However, an increasing trend emerged in 2022 and 2023, with expenses rising to 128.4 million US$ and 139.5 million US$, respectively. This upward movement suggests an increase in the cost of debt or an expansion of the total debt load during the latter part of the period.
- Interest Coverage Ratio Performance
- The interest coverage ratio improved steadily from 13.72 in 2019 to a peak of 20.22 in 2022, reflecting a strengthening solvency position and a widening margin of safety. The ratio declined to 18.60 in 2023, a result of the simultaneous stagnation in EBIT and the increase in interest expenses. Despite this recent dip, the ratio remains significantly higher than 2019 levels, confirming a robust ability to service interest payments.
Overall, the solvency profile remains healthy. The company has maintained an interest coverage ratio well above levels that would typically trigger concern, although the 2023 figures indicate a shift where rising interest costs began to exert pressure on the coverage margin.
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Fixed Charge Coverage
Amphenol Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Amphenol Corporation | 1,928,000) | 1,902,300) | 1,590,800) | 1,203,400) | 1,155,000) | |
| Add: Net income attributable to noncontrolling interest | 17,500) | 14,500) | 10,700) | 9,900) | 9,000) | |
| Less: Income from discontinued operations, net of income taxes | —) | —) | 21,400) | —) | —) | |
| Add: Income tax expense | 509,300) | 550,600) | 409,100) | 313,300) | 331,900) | |
| Add: Interest expense | 139,500) | 128,400) | 115,500) | 115,400) | 117,600) | |
| Earnings before interest and tax (EBIT) | 2,594,300) | 2,595,800) | 2,104,700) | 1,642,000) | 1,613,500) | |
| Add: Operating lease cost | 127,100) | 121,400) | 118,200) | 98,700) | 97,600) | |
| Earnings before fixed charges and tax | 2,721,400) | 2,717,200) | 2,222,900) | 1,740,700) | 1,711,100) | |
| Interest expense | 139,500) | 128,400) | 115,500) | 115,400) | 117,600) | |
| Operating lease cost | 127,100) | 121,400) | 118,200) | 98,700) | 97,600) | |
| Fixed charges | 266,600) | 249,800) | 233,700) | 214,100) | 215,200) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 10.21 | 10.88 | 9.51 | 8.13 | 7.95 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Apple Inc. | 20.17 | 25.65 | 26.13 | 16.34 | — | |
| Arista Networks Inc. | 73.83 | 49.20 | 31.02 | — | — | |
| Cisco Systems Inc. | 18.98 | 20.30 | 16.92 | — | — | |
| Dell Technologies Inc. | 3.14 | 4.16 | 2.26 | — | — | |
| Lumentum Holdings Inc. | -1.05 | 3.52 | 6.73 | — | — | |
| Super Micro Computer Inc. | 40.95 | 24.03 | 12.52 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Technology Hardware & Equipment | 17.13 | 19.64 | 16.52 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 11.19 | 13.23 | 12.08 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,721,400 ÷ 266,600 = 10.21
2 Click competitor name to see calculations.
The solvency profile over the five-year period from 2019 to 2023 demonstrates a consistent strengthening of the ability to meet fixed financial obligations. While both earnings and fixed charges increased over the duration, earnings growth significantly outpaced the rise in costs, leading to an overall improvement in the margin of safety.
- Earnings before Fixed Charges and Tax
- A strong upward trajectory is evident, with earnings increasing from 1,711,100 thousand US$ in 2019 to 2,721,400 thousand US$ in 2023. The most substantial growth occurred between 2020 and 2022, where earnings rose from 1,740,700 thousand US$ to 2,717,200 thousand US$, before stabilizing in 2023.
- Fixed Charge Obligations
- Fixed charges exhibited a gradual and steady increase over the analyzed period. After remaining relatively flat between 2019 and 2020, charges rose linearly from 214,100 thousand US$ in 2020 to 266,600 thousand US$ in 2023, representing a disciplined growth in fixed costs relative to the scale of operations.
- Fixed Charge Coverage Ratio
- The coverage ratio improved from 7.95 in 2019 to a peak of 10.88 in 2022, reflecting an enhanced capacity to service fixed debts. A slight contraction to 10.21 occurred in 2023, coinciding with a plateau in earnings growth and a continued increase in fixed charges. Despite this minor decline, the ratio remains substantially higher than the 2019 baseline, indicating a robust solvency position.
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