Alcoa Corp (AA)

Solvency ratios

	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
Debt-to-assets ratio	0.12	0.13	0.13	0.13	0.12	0.12	0.11	0.11	0.11	0.12	0.15	0.15	0.17	0.18	0.14	0.13	0.12	0.12	0.12	0.11
Debt-to-capital ratio	0.29	0.29	0.27	0.28	0.26	0.24	0.23	0.27	0.27	0.31	0.37	0.41	0.43	0.43	0.33	0.30	0.30	0.28	0.27	0.26
Debt-to-equity ratio	0.41	0.40	0.37	0.39	0.36	0.32	0.30	0.38	0.37	0.44	0.59	0.68	0.74	0.75	0.49	0.42	0.44	0.40	0.37	0.35
Financial leverage ratio	3.33	3.09	2.92	3.06	2.91	2.77	2.77	3.49	3.22	3.66	3.83	4.60	4.49	4.20	3.59	3.19	3.56	3.23	3.14	3.09

Based on the provided data, we can observe the following trends in Alcoa Corp's solvency ratios:

1. Debt-to-assets ratio: This ratio remained relatively stable at around 0.13 throughout the quarters, indicating that roughly 13% of the company's assets were financed by debt.

2. Debt-to-capital ratio: There was a slight fluctuation in this ratio, ranging from 0.24 to 0.30 over the quarters. This ratio indicates the proportion of a company's capital that is financed by debt and shows a gradual increase in debt financing.

3. Debt-to-equity ratio: Alcoa Corp's debt-to-equity ratio also showed variability, ranging from 0.32 to 0.43. This ratio signifies the extent to which the company is leveraged by debt in relation to shareholders' equity.

4. Financial leverage ratio: The financial leverage ratio fluctuated between 2.77 and 3.49. This ratio reflects the company's level of financial risk and leverage, with a higher ratio indicating higher financial risk due to increased reliance on debt financing.

Overall, Alcoa Corp's solvency ratios suggest a relatively stable debt structure with moderate levels of leverage. However, fluctuations in these ratios over time may indicate changing levels of financial risk and capital structure management within the company. Further analysis and comparison with industry benchmarks would provide deeper insights into the company's solvency position.

Coverage ratios

	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
Interest coverage	-5.06	-5.45	-10.35	-1.96	6.10	7.13	13.99	9.25	6.43	6.56	4.61	1.79	1.12	-0.85	-1.98	-3.14	-4.87	-1.04	2.07	5.66

The interest coverage ratio for Alcoa Corp varied significantly over the eight quarters provided. In the most recent quarter (Q4 2023), the company's interest coverage ratio was negative, indicating that Alcoa's earnings before interest and taxes were insufficient to cover its interest expenses. This negative trend in the interest coverage ratio continued from Q3 2023 to Q1 2023, suggesting potential liquidity and solvency concerns for the company.

The positive interest coverage ratios observed in the previous quarters (Q4 2022 to Q2 2022) indicated that Alcoa had ample earnings to cover its interest payments during that period. However, there was a gradual decline in the interest coverage ratio from Q4 2022 to Q1 2022, although the ratios remained positive.

Overall, the fluctuation in Alcoa Corp's interest coverage ratio suggests a varying ability to meet its interest obligations over the past eight quarters. The recent negative ratios are concerning and may indicate a need for the company to closely monitor its financial performance and liquidity position to ensure its long-term financial health.