Alcoa Corp (AA)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 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 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.73 | 2.77 | 3.67 | 3.59 | 3.33 | 3.09 | 2.92 | 3.06 | 2.91 | 2.77 | 2.77 | 3.49 | 3.23 | 3.66 | 3.83 | 4.60 | 4.52 | 4.19 | 3.59 | 3.19 |
Based on the provided data for Alcoa Corp's solvency ratios, we can observe the following:
1. Debt-to-assets ratio: Alcoa Corp has consistently maintained a debt-to-assets ratio of 0.00 across all quarters up to December 31, 2024. This indicates that the company has no debt relative to its total assets during this period.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio for Alcoa Corp remains constant at 0.00 throughout the quarters up to December 31, 2024. This suggests that the company's debt is negligible in relation to its total capital.
3. Debt-to-equity ratio: Alcoa Corp's debt-to-equity ratio also stays at 0.00 consistently across all quarters until December 31, 2024. This reflects that the company's debt levels are minimal compared to its equity position.
4. Financial leverage ratio: The financial leverage ratio fluctuates over the quarters, ranging from 2.77 to 4.60, with a decreasing trend from 2020 to 2024. A lower financial leverage ratio indicates that the company is relying less on debt financing and is better positioned to cover its financial obligations.
Overall, based on the solvency ratios analysis, Alcoa Corp appears to have a strong financial position with very low to no debt levels in relation to its assets, capital, and equity. The decreasing trend in the financial leverage ratio reflects a potential improvement in the company's ability to manage its debt and financial risks over the years.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.99 | -0.91 | -4.45 | -6.75 | -5.46 | -7.11 | -12.00 | -2.25 | 6.62 | 8.06 | 14.87 | 9.27 | 6.15 | 6.22 | 4.31 | 1.68 | 1.18 | -1.00 | -1.69 | -2.31 |
The interest coverage ratio for Alcoa Corp over the past few quarters has shown significant fluctuations. From March 31, 2020, to June 30, 2021, the company experienced negative interest coverage, indicating that its earnings were not sufficient to cover its interest expenses during that period. However, starting from March 31, 2022, the interest coverage ratio improved significantly, reflecting a healthier financial position.
The trend continued to improve until June 30, 2022, where the interest coverage ratio reached its highest point of 14.87, implying that Alcoa Corp's earnings were 14.87 times higher than its interest expenses. This demonstrates a strong ability to meet its interest obligations using operating profits.
Subsequently, there was a slight decline in interest coverage, but the ratio remained above 1, indicating that the company's earnings continued to cover its interest expenses adequately. However, from March 31, 2023, to December 31, 2024, the interest coverage ratio turned negative again, signaling potential financial difficulties. This could suggest a decline in profitability or an increase in interest expenses relative to earnings during that period.
Overall, the analysis of Alcoa Corp's interest coverage ratio illustrates periods of financial strength and weakness, underscoring the importance of monitoring this ratio to assess the company's ability to meet its debt obligations through its operating income.