Ball Corporation (BALL)

Based on the solvency ratios of Ball Corp. over the past five years, we can observe the following trends:

1. Debt-to-assets ratio: The company's debt-to-assets ratio has fluctuated between 0.39 and 0.45 over the past five years. In 2023, the ratio stands at 0.44, indicating that 44% of Ball Corp.'s assets are financed by debt.

2. Debt-to-capital ratio: Ball Corp.'s debt-to-capital ratio has ranged from 0.68 to 0.73 during the same period. As of 2023, the ratio is at 0.69, suggesting that 69% of the company's capital structure is comprised of debt.

3. Debt-to-equity ratio: The debt-to-equity ratio shows how much of the company's financing comes from debt relative to equity. Ball Corp.'s debt-to-equity ratio has varied between 2.13 and 2.65 over the past five years. In 2023, the ratio is 2.27, indicating that the company has $2.27 in debt for every $1 of equity.

4. Financial leverage ratio: The financial leverage ratio measures the extent to which the company utilizes debt in its capital structure. Ball Corp.'s financial leverage ratio has ranged from 5.12 to 5.89 over the five-year period, with a value of 5.12 in 2023. This signifies that the company's financial leverage is 5.12 times its equity.

Overall, Ball Corp. has maintained relatively stable solvency ratios over the past five years, with minor fluctuations in key metrics such as debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios. Monitoring these ratios helps assess the company's ability to meet its financial obligations and manage its debt levels effectively.

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Coverage ratios

Based on the historical data provided, Ball Corp.'s interest coverage ratio has fluctuated over the past five years. The interest coverage ratio measures the company's ability to meet its interest payment obligations with its operating income.

The interest coverage ratio for Ball Corp. in 2023 was 3.15, indicating that the company generated operating income 3.15 times greater than its interest expense for the year. This represents a decrease from the previous year and a decline from the higher levels seen in 2021 and 2020.

In 2022, the interest coverage ratio was 4.14, showing an improvement from the previous year. The ratio was even stronger in 2021 at 5.40, suggesting that Ball Corp. had a higher level of operating income relative to its interest expenses. Similarly, in 2020, the interest coverage ratio was 4.58, indicating a solid ability to cover interest payments.

The lowest interest coverage ratio in the period provided was in 2019 at 3.71, which still showed an ability to cover interest payments but was lower compared to the subsequent years.

Overall, while Ball Corp.'s interest coverage has shown some variability, the company has generally been able to comfortably cover its interest expenses with its operating income over the past five years. However, the decreasing trend in recent years may indicate a need for further monitoring to ensure the company's ability to meet its debt obligations in the future.