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)
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibited fluctuations across the periods, starting at 0.86 in March 2019 and reaching a peak of 1.16 in March 2020. Following this peak, the ratio generally trended downward, declining steadily to 0.50 by March 2024. This indicates a gradual reduction in reliance on debt relative to equity over the full timeframe, signaling strengthening equity positions or reduced borrowing.
- Debt to Capital Ratio
- The debt to capital ratio mirrored the trend of the debt to equity ratio with noticeable variability. Initially, it was 0.46 in March 2019 and rose to 0.54 in March 2020. Thereafter, the ratio consistently decreased to 0.33 by March 2024. This steady decline suggests an improvement in capital structure and reduced financial risk from debt financing.
- Debt to Assets Ratio
- This ratio showed a similar pattern, starting at 0.35 in March 2019, increasing to 0.42 in March 2020, and then gradually falling to 0.26 by March 2024. The reduction represents a lowered proportion of assets financed through debt, reflecting a conservative approach or enhanced asset base with less leverage.
- Financial Leverage
- Financial leverage followed the trend of other debt-related ratios with some fluctuations. It began at 2.48 in March 2019, peaked at 2.75 in March 2020, then declined steadily to 1.93 by March 2024. The decreasing financial leverage indicates a reduction in total assets relative to equity, implying less aggressive use of borrowed funds and a strengthening balance sheet.
- Interest Coverage Ratio
- Interest coverage data was missing for early periods but available from December 2019 onward. From 13.72 in December 2019, the ratio increased progressively to 19.05 by March 2024. This upward trend suggests improved earnings relative to interest expenses, enhancing the firm's ability to meet debt obligations comfortably and signaling improved operational profitability or lower interest burdens.
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 752,500) | 353,800) | 355,600) | 351,800) | 2,900) | 2,700) | 2,900) | 28,100) | 23,700) | 4,000) | 298,700) | 526,100) | 526,400) | 230,300) | 229,200) | 2,300) | 500,900) | 403,300) | 403,700) | 403,100) | 6,000) | |||||||
| Long-term debt, less current portion | 3,556,900) | 3,983,500) | 3,936,400) | 3,967,400) | 4,561,000) | 4,575,000) | 4,750,300) | 4,834,200) | 4,908,800) | 4,795,900) | 4,950,000) | 4,710,200) | 4,110,300) | 3,636,200) | 3,586,000) | 3,763,800) | 4,591,500) | 3,203,400) | 3,545,400) | 3,569,400) | 3,554,800) | |||||||
| Total debt | 4,309,400) | 4,337,300) | 4,292,000) | 4,319,200) | 4,563,900) | 4,577,700) | 4,753,200) | 4,862,300) | 4,932,500) | 4,799,900) | 5,248,700) | 5,236,300) | 4,636,700) | 3,866,500) | 3,815,200) | 3,766,100) | 5,092,400) | 3,606,700) | 3,949,100) | 3,972,500) | 3,560,800) | |||||||
| Stockholders’ equity attributable to Amphenol Corporation | 8,681,500) | 8,346,500) | 7,856,800) | 7,513,700) | 7,308,100) | 7,015,600) | 6,570,900) | 6,464,300) | 6,426,100) | 6,302,000) | 5,945,900) | 5,715,500) | 5,461,000) | 5,384,900) | 5,040,200) | 4,738,600) | 4,385,800) | 4,530,300) | 4,155,300) | 4,148,300) | 4,123,100) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 0.50 | 0.52 | 0.55 | 0.57 | 0.62 | 0.65 | 0.72 | 0.75 | 0.77 | 0.76 | 0.88 | 0.92 | 0.85 | 0.72 | 0.76 | 0.79 | 1.16 | 0.80 | 0.95 | 0.96 | 0.86 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Apple Inc. | 1.46 | 1.79 | 1.81 | 1.76 | 1.96 | 2.37 | 2.06 | 1.78 | 1.71 | 1.98 | 1.89 | 1.76 | 1.69 | 1.72 | 1.56 | 1.40 | 1.21 | 1.19 | 1.12 | 1.06 | 0.97 | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.17 | 0.19 | 0.20 | 0.21 | 0.22 | 0.24 | 0.23 | 0.29 | 0.22 | 0.28 | 0.29 | 0.37 | 0.38 | 0.38 | 0.45 | 0.45 | 0.54 | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | 5.36 | 9.04 | 13.39 | 19.36 | 56.47 | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.07 | 0.15 | 0.11 | 0.09 | 0.15 | 0.42 | 0.43 | 0.27 | 0.25 | 0.09 | 0.08 | 0.04 | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 | — | — | — | — | |||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity attributable to Amphenol Corporation
= 4,309,400 ÷ 8,681,500 = 0.50
2 Click competitor name to see calculations.
The analysis of the provided financial data reveals notable trends in the company's leverage and equity positions over the observed periods.
- Total Debt
- The total debt exhibited fluctuations across the quarters. Beginning at approximately $3.56 billion in early 2019, it reached a peak near $5.09 billion in the first quarter of 2020. Subsequent quarters saw a reduction and stabilization in debt levels, generally trending downward from the end of 2020 through early 2024, culminating in around $4.31 billion. This suggests a deliberate effort to manage and reduce debt following the mid-2020 peak.
- Stockholders’ Equity
- Stockholders' equity steadily increased throughout the period. Starting at approximately $4.12 billion in early 2019, equity rose consistently quarter-over-quarter to reach nearly $8.68 billion by the first quarter of 2024. The consistent growth in equity reflects strengthening financial reserves, possibly from retained earnings or capital contributions, enhancing the company’s net asset base.
- Debt to Equity Ratio
- The debt to equity ratio experienced considerable variation, initially increasing from 0.86 at the start of 2019 to a high of 1.16 in the first quarter of 2020, coinciding with the peak in total debt. Following this peak, the ratio steadily decreased, indicating a reduction in leverage relative to equity. By early 2024, the ratio stood at 0.50, signifying improved balance sheet strength and a lower reliance on debt financing relative to the company's equity base.
Collectively, these patterns indicate that after a period of elevated leverage in early 2020, the company pursued deleveraging strategies, concurrently enhancing its equity. This improved capital structure may suggest a focus on financial stability and risk mitigation, potentially positioning the company favorably for future growth opportunities.
Debt to Capital
Amphenol Corp., debt to capital calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 752,500) | 353,800) | 355,600) | 351,800) | 2,900) | 2,700) | 2,900) | 28,100) | 23,700) | 4,000) | 298,700) | 526,100) | 526,400) | 230,300) | 229,200) | 2,300) | 500,900) | 403,300) | 403,700) | 403,100) | 6,000) | |||||||
| Long-term debt, less current portion | 3,556,900) | 3,983,500) | 3,936,400) | 3,967,400) | 4,561,000) | 4,575,000) | 4,750,300) | 4,834,200) | 4,908,800) | 4,795,900) | 4,950,000) | 4,710,200) | 4,110,300) | 3,636,200) | 3,586,000) | 3,763,800) | 4,591,500) | 3,203,400) | 3,545,400) | 3,569,400) | 3,554,800) | |||||||
| Total debt | 4,309,400) | 4,337,300) | 4,292,000) | 4,319,200) | 4,563,900) | 4,577,700) | 4,753,200) | 4,862,300) | 4,932,500) | 4,799,900) | 5,248,700) | 5,236,300) | 4,636,700) | 3,866,500) | 3,815,200) | 3,766,100) | 5,092,400) | 3,606,700) | 3,949,100) | 3,972,500) | 3,560,800) | |||||||
| Stockholders’ equity attributable to Amphenol Corporation | 8,681,500) | 8,346,500) | 7,856,800) | 7,513,700) | 7,308,100) | 7,015,600) | 6,570,900) | 6,464,300) | 6,426,100) | 6,302,000) | 5,945,900) | 5,715,500) | 5,461,000) | 5,384,900) | 5,040,200) | 4,738,600) | 4,385,800) | 4,530,300) | 4,155,300) | 4,148,300) | 4,123,100) | |||||||
| Total capital | 12,990,900) | 12,683,800) | 12,148,800) | 11,832,900) | 11,872,000) | 11,593,300) | 11,324,100) | 11,326,600) | 11,358,600) | 11,101,900) | 11,194,600) | 10,951,800) | 10,097,700) | 9,251,400) | 8,855,400) | 8,504,700) | 9,478,200) | 8,137,000) | 8,104,400) | 8,120,800) | 7,683,900) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.33 | 0.34 | 0.35 | 0.37 | 0.38 | 0.39 | 0.42 | 0.43 | 0.43 | 0.43 | 0.47 | 0.48 | 0.46 | 0.42 | 0.43 | 0.44 | 0.54 | 0.44 | 0.49 | 0.49 | 0.46 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Apple Inc. | 0.59 | 0.64 | 0.64 | 0.64 | 0.66 | 0.70 | 0.67 | 0.64 | 0.63 | 0.66 | 0.65 | 0.64 | 0.63 | 0.63 | 0.61 | 0.58 | 0.55 | 0.54 | 0.53 | 0.52 | 0.49 | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.14 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.23 | 0.18 | 0.22 | 0.22 | 0.27 | 0.28 | 0.28 | 0.31 | 0.31 | 0.35 | — | — | — | — | |||||||
| Dell Technologies Inc. | 1.12 | 1.12 | 1.15 | 1.12 | 1.10 | 1.07 | 0.84 | 0.90 | 0.93 | 0.95 | 0.98 | 1.01 | 1.03 | 1.03 | 1.04 | 1.05 | 1.14 | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.06 | 0.13 | 0.10 | 0.09 | 0.13 | 0.30 | 0.30 | 0.21 | 0.20 | 0.08 | 0.07 | 0.04 | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 | — | — | — | — | |||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,309,400 ÷ 12,990,900 = 0.33
2 Click competitor name to see calculations.
The analysis of the debt-related financial data over the specified periods reveals several notable trends and patterns. The metrics considered include total debt, total capital, and the debt to capital ratio, all expressed in thousands of US dollars and ratios respectively.
- Total Debt
- The total debt exhibited fluctuations throughout the periods. Initially, from March 2019 to December 2019, total debt declined slightly from approximately 3.56 billion to 3.61 billion USD. However, a significant increase occurred at the start of 2020, peaking at about 5.09 billion USD in March 2020. Subsequently, total debt decreased markedly and stabilized around the range of 3.75 to 3.86 billion USD through the rest of 2020. From 2021 onwards, total debt increased again, reaching a peak near 5.25 billion USD in mid-2021, followed by a gradual and consistent decline into 2024, with the amount falling to approximately 4.31 billion USD by March 2024.
- Total Capital
- Total capital showed a generally increasing trend over the examined timeframe. Starting at roughly 7.68 billion USD in March 2019, it steadily grew to around 8.14 billion USD by December 2019. Thereafter, total capital experienced an accelerated increase through 2020, reaching approximately 9.25 billion USD by the end of that year. This growth trend continued, with total capital rising to around 11.10 billion USD by the end of 2021 and further expanding to nearly 12.99 billion USD by March 2024. The steady increase in total capital indicates ongoing capital accumulation or reinvestment over the period.
- Debt to Capital Ratio
- The debt to capital ratio reveals a coherent relationship between debt levels and overall capital structure. It peaked at 0.54 in March 2020, corresponding to the surge in total debt at that time. After this peak, the ratio declined steadily, dropping to approximately 0.33 by March 2024. The consistent decrease in the debt to capital ratio over the later periods suggests a strategic reduction in leverage or a stronger equity base growth relative to debt. This implies progressive strengthening of the capital structure with less reliance on debt financing as time progresses.
In summary, the data illustrates an initial increase in indebtedness, followed by consolidation and reduction of total debt. Concurrently, total capital has progressively increased, which has led to a declining trend in the debt to capital ratio. This overall pattern points to a deliberate management approach toward lowering leverage and enhancing financial stability over the observed periods.
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current portion of long-term debt | 752,500) | 353,800) | 355,600) | 351,800) | 2,900) | 2,700) | 2,900) | 28,100) | 23,700) | 4,000) | 298,700) | 526,100) | 526,400) | 230,300) | 229,200) | 2,300) | 500,900) | 403,300) | 403,700) | 403,100) | 6,000) | |||||||
| Long-term debt, less current portion | 3,556,900) | 3,983,500) | 3,936,400) | 3,967,400) | 4,561,000) | 4,575,000) | 4,750,300) | 4,834,200) | 4,908,800) | 4,795,900) | 4,950,000) | 4,710,200) | 4,110,300) | 3,636,200) | 3,586,000) | 3,763,800) | 4,591,500) | 3,203,400) | 3,545,400) | 3,569,400) | 3,554,800) | |||||||
| Total debt | 4,309,400) | 4,337,300) | 4,292,000) | 4,319,200) | 4,563,900) | 4,577,700) | 4,753,200) | 4,862,300) | 4,932,500) | 4,799,900) | 5,248,700) | 5,236,300) | 4,636,700) | 3,866,500) | 3,815,200) | 3,766,100) | 5,092,400) | 3,606,700) | 3,949,100) | 3,972,500) | 3,560,800) | |||||||
| Total assets | 16,722,500) | 16,526,400) | 15,759,000) | 15,237,900) | 15,381,500) | 15,326,200) | 15,097,900) | 14,986,100) | 14,873,600) | 14,678,400) | 14,926,100) | 14,559,100) | 13,133,500) | 12,327,300) | 11,753,900) | 11,203,900) | 12,077,700) | 10,815,500) | 10,683,600) | 10,634,000) | 10,208,100) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.26 | 0.26 | 0.27 | 0.28 | 0.30 | 0.30 | 0.31 | 0.32 | 0.33 | 0.33 | 0.35 | 0.36 | 0.35 | 0.31 | 0.32 | 0.34 | 0.42 | 0.33 | 0.37 | 0.37 | 0.35 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Apple Inc. | 0.31 | 0.32 | 0.33 | 0.33 | 0.32 | 0.34 | 0.36 | 0.34 | 0.32 | 0.36 | 0.37 | 0.36 | 0.32 | 0.35 | 0.36 | 0.34 | 0.32 | 0.32 | 0.34 | 0.33 | 0.31 | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.12 | 0.10 | 0.12 | 0.12 | 0.15 | 0.15 | 0.15 | 0.18 | 0.18 | 0.20 | — | — | — | — | |||||||
| Dell Technologies Inc. | 0.34 | 0.33 | 0.32 | 0.30 | 0.31 | 0.29 | 0.35 | 0.36 | 0.38 | 0.39 | 0.42 | 0.44 | 0.47 | 0.44 | 0.45 | 0.45 | 0.49 | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.04 | 0.08 | 0.06 | 0.06 | 0.08 | 0.19 | 0.18 | 0.12 | 0.11 | 0.04 | 0.04 | 0.02 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | — | — | — | — | |||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,309,400 ÷ 16,722,500 = 0.26
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends related to the company’s debt structure and asset base over the period from March 2019 to March 2024.
- Total Debt
- The total debt levels have shown fluctuations with notable peaks and declines. Initially, debt increased from 3,560,800 thousand USD in March 2019 to a peak of 5,092,400 thousand USD in March 2020. Following this peak, debt decreased significantly through the second half of 2020, before rising again to another peak of 5,248,700 thousand USD in September 2021. From late 2021 onward, a consistent downward trend in total debt is observed, reaching 4,309,400 thousand USD in March 2024. This indicates a tendency towards debt reduction in recent periods after periods of debt accumulation.
- Total Assets
- Total assets exhibit a generally increasing trend throughout the observed period. Starting at 10,208,100 thousand USD in March 2019, assets steadily increased, with some acceleration from late 2020 onwards. By March 2024, total assets reached 16,722,500 thousand USD, reflecting significant growth in the overall asset base. The consistent asset growth contrasts with the more volatile debt levels, suggesting an expanding business scale or asset accumulation over time.
- Debt to Assets Ratio
- The debt to assets ratio fluctuated between 0.26 and 0.42 but demonstrated a gradual downward trend overall. It peaked at 0.42 in March 2020, coinciding with the highest recorded debt level relative to assets. After this point, the ratio steadily declined to 0.26 by March 2024. This declining ratio indicates an improvement in the company’s leverage position, with debt growing at a slower pace than assets or absolute debt being reduced while assets increased. The ratio's decline can be interpreted as enhanced financial stability and lower relative indebtedness.
In summary, the data indicates that while the company experienced periods of increased indebtedness, particularly around early 2020 and late 2021, it has since managed to reduce its total debt and leverage ratio. Concurrently, the company’s asset base has grown substantially, leading to a more favorable debt to assets ratio by the end of the observed period. The financial position as reflected by these metrics suggests improving solvency and a strengthening balance sheet structure.
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total assets | 16,722,500) | 16,526,400) | 15,759,000) | 15,237,900) | 15,381,500) | 15,326,200) | 15,097,900) | 14,986,100) | 14,873,600) | 14,678,400) | 14,926,100) | 14,559,100) | 13,133,500) | 12,327,300) | 11,753,900) | 11,203,900) | 12,077,700) | 10,815,500) | 10,683,600) | 10,634,000) | 10,208,100) | |||||||
| Stockholders’ equity attributable to Amphenol Corporation | 8,681,500) | 8,346,500) | 7,856,800) | 7,513,700) | 7,308,100) | 7,015,600) | 6,570,900) | 6,464,300) | 6,426,100) | 6,302,000) | 5,945,900) | 5,715,500) | 5,461,000) | 5,384,900) | 5,040,200) | 4,738,600) | 4,385,800) | 4,530,300) | 4,155,300) | 4,148,300) | 4,123,100) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 1.93 | 1.98 | 2.01 | 2.03 | 2.10 | 2.18 | 2.30 | 2.32 | 2.31 | 2.33 | 2.51 | 2.55 | 2.40 | 2.29 | 2.33 | 2.36 | 2.75 | 2.39 | 2.57 | 2.56 | 2.48 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Apple Inc. | 4.77 | 5.67 | 5.56 | 5.34 | 6.11 | 6.96 | 5.79 | 5.20 | 5.30 | 5.56 | 5.13 | 4.87 | 5.35 | 4.96 | 4.39 | 4.09 | 3.80 | 3.74 | 3.34 | 3.23 | 3.17 | |||||||
| Arista Networks Inc. | 1.34 | 1.38 | 1.39 | 1.40 | 1.42 | 1.39 | 1.41 | 1.45 | 1.47 | 1.44 | 1.41 | 1.41 | 1.42 | 1.43 | 1.43 | 1.43 | 1.44 | — | — | — | — | |||||||
| Cisco Systems Inc. | 2.18 | 2.30 | 2.31 | 2.31 | 2.31 | 2.36 | 2.30 | 2.39 | 2.25 | 2.36 | 2.34 | 2.44 | 2.49 | 2.50 | 2.56 | 2.54 | 2.69 | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | 15.15 | 25.43 | 34.92 | 49.78 | 134.71 | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 1.89 | 1.86 | 1.81 | 1.69 | 2.03 | 2.25 | 2.41 | 2.26 | 2.14 | 2.05 | 1.90 | 1.78 | 1.69 | 1.80 | 1.89 | 1.80 | 1.75 | — | — | — | — | |||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity attributable to Amphenol Corporation
= 16,722,500 ÷ 8,681,500 = 1.93
2 Click competitor name to see calculations.
- Total assets
- The total assets demonstrate an overall upward trajectory throughout the reported periods. Starting from approximately $10.2 billion in March 2019, assets experienced a steady increase with some fluctuations, reaching around $12.1 billion by March 2020. Despite a minor dip in June 2020, assets recovered and continued rising, peaking at about $16.5 billion in December 2023. By March 2024, total assets further increased slightly to approximately $16.7 billion. This trend suggests consistent growth in the company’s asset base over the five-year span, with notable acceleration after mid-2020.
- Stockholders’ equity attributable to Amphenol Corporation
- Stockholders’ equity also shows a clear positive trend across the quarters. Starting near $4.1 billion in March 2019, equity values increased gradually, reaching nearly $4.4 billion by March 2020. From mid-2020 onward, there is a more pronounced upward movement, with equity rising to nearly $5.4 billion by the end of 2020 and continuing to grow steadily each quarter. By March 2024, stockholders' equity attained approximately $8.7 billion. This consistent increase indicates strengthening financial foundations and possibly retained earnings or capital infusions enhancing shareholder value.
- Financial leverage
- Financial leverage ratios reveal a declining trend over the analyzed periods. Initially, leverage stood at 2.48 in March 2019 and peaked slightly at 2.75 in March 2020, indicating increased use of debt relative to equity early in the period. However, from that point forward, the ratio consistently decreased, suggesting a gradual reduction in leverage. By March 2024, the financial leverage ratio had declined to 1.93. This reduction implies a strategic movement towards lower reliance on debt or growth in equity outpacing debt increases, reflecting a more conservative capital structure or improved risk management over time.
- Overall insights
- The combined analysis of total assets, stockholders’ equity, and financial leverage indicates a steady expansion in the company’s asset base and equity capital, accompanied by a deliberate decrease in leverage. These patterns suggest a strengthening balance sheet and an emphasis on sustainable growth with prudent financial management. The increase in equity outpacing asset growth explains the declining leverage, reinforcing the firm’s improvement in financial stability and reduced risk exposure over the five-year period.
Interest Coverage
Amphenol Corp., interest coverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income attributable to Amphenol Corporation | 548,700) | 514,400) | 513,900) | 460,500) | 439,200) | 507,500) | 496,600) | 472,500) | 425,700) | 464,900) | 426,500) | 369,800) | 329,600) | 357,000) | 346,600) | 257,700) | 242,100) | 318,800) | 280,300) | 288,400) | 267,500) | |||||||
| Add: Net income attributable to noncontrolling interest | 3,300) | 4,800) | 4,400) | 4,800) | 3,500) | 3,500) | 3,900) | 3,600) | 3,500) | 3,800) | 2,900) | 1,800) | 2,200) | 3,100) | 2,900) | 2,800) | 1,100) | 2,100) | 2,000) | 2,500) | 2,400) | |||||||
| Less: Income from discontinued operations, net of income taxes | —) | —) | —) | —) | —) | —) | —) | —) | —) | 11,100) | 7,700) | 2,600) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Add: Income tax expense | 110,700) | 146,300) | 115,200) | 130,600) | 117,200) | 121,500) | 150,400) | 144,500) | 134,200) | 106,400) | 120,500) | 78,100) | 104,100) | 100,000) | 99,300) | 68,000) | 46,000) | 81,800) | 91,800) | 78,700) | 79,600) | |||||||
| Add: Interest expense | 38,100) | 35,000) | 33,600) | 35,000) | 35,900) | 37,000) | 32,800) | 30,500) | 28,100) | 28,800) | 29,000) | 29,100) | 28,600) | 28,400) | 28,000) | 30,200) | 28,800) | 28,200) | 29,700) | 30,000) | 29,700) | |||||||
| Earnings before interest and tax (EBIT) | 700,800) | 700,500) | 667,100) | 630,900) | 595,800) | 669,500) | 683,700) | 651,100) | 591,500) | 592,800) | 571,200) | 476,200) | 464,500) | 488,500) | 476,800) | 358,700) | 318,000) | 430,900) | 403,800) | 399,600) | 379,200) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | 19.05 | 18.60 | 18.12 | 18.34 | 19.09 | 20.22 | 20.96 | 20.68 | 19.41 | 18.22 | 17.38 | 16.70 | 15.53 | 14.23 | 13.75 | 12.93 | 13.30 | 13.72 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Cisco Systems Inc. | 38.18 | 36.87 | 35.87 | 37.17 | 39.53 | 41.21 | 41.54 | 38.79 | 35.64 | 31.56 | 29.20 | 27.76 | 25.98 | 24.88 | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 84.71 | 72.55 | 70.87 | 68.85 | 56.79 | 53.71 | 51.73 | 42.94 | 45.86 | 48.81 | 38.80 | 38.83 | 36.02 | 40.01 | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
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)
= (700,800 + 700,500 + 667,100 + 630,900)
÷ (38,100 + 35,000 + 33,600 + 35,000)
= 19.05
2 Click competitor name to see calculations.
The data reveals several key trends in the financial performance over the periods analyzed. Earnings before interest and tax (EBIT) show a general upward trend from March 31, 2019, through March 31, 2024, despite some fluctuations. Initially, EBIT slightly increased from 379,200 in March 2019 to 430,900 by December 2019, followed by a decline to 318,000 in March 2020, likely indicating an adverse event or market condition around that time. Thereafter, EBIT recovered and experienced steady growth, reaching a peak of 700,800 by March 2024.
Interest expense remains relatively stable with minor variations throughout the periods. It ranges mostly between 28,000 and 38,100 across the quarters, without exhibiting a definitive upward or downward trend. The stability of interest expenses suggests consistent borrowing costs or stable debt levels during this timeline.
Interest coverage ratios, which measure the ability to cover interest expenses with EBIT, show a significant improvement across the periods. Starting from a coverage ratio of 13.72 in March 2020, the ratio steadily rises to 19.05 by March 2024. This upward trend indicates enhanced capacity to meet interest obligations, largely driven by increasing EBIT figures rather than reduction in interest expenses.
- EBIT
- Exhibits overall growth despite a mid-period dip; significant recovery and strong performance in recent periods.
- Interest expense
- Stable with minor fluctuations, indicating consistent debt servicing costs.
- Interest coverage ratio
- Steadily improved over time, reflecting increased earnings relative to interest expenses and stronger financial health.
Overall, the financial data reflects improving profitability and enhanced ability to cover interest payments, suggesting favorable operational performance and potentially prudent financial management throughout the periods analyzed.