Ball Corporation (BALL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.97 | 5.12 | 5.64 | 5.35 | 5.47 |
Based on the provided solvency ratios for Ball Corporation, we can see that the company has maintained a strong financial position over the years:
1. Debt-to-assets ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 across all years, indicating that Ball Corporation has not relied on debt to finance its assets. This shows a solid financial position and a low financial risk for the company.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has remained at 0.00 for each year, implying that the company has not used debt as a significant source of capital. This demonstrates the company's ability to fund its operations and investments with equity capital rather than debt.
3. Debt-to-equity ratio: The debt-to-equity ratio has also remained at 0.00 throughout the years, reinforcing the low level of financial risk associated with Ball Corporation's capital structure. A lower debt-to-equity ratio indicates that the company has a lower level of debt relative to its equity, which is a positive sign for creditors and investors.
4. Financial leverage ratio: The financial leverage ratio has shown some fluctuations over the years, with a peak at 5.64 in 2022 and a significant decrease to 2.97 in 2024. This ratio indicates the extent to which the company is using debt to finance its operations and assets. Despite the fluctuations, the overall trend suggests that Ball Corporation has reduced its reliance on debt financing, leading to a more stable financial position.
In conclusion, the solvency ratios of Ball Corporation reflect a conservative approach to financing, with minimal debt levels and a strong reliance on equity capital. This positions the company well to manage financial risks and maintain financial stability over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.83 | 2.77 | 3.88 | 4.73 | 3.47 |
The interest coverage ratio for Ball Corporation has shown some fluctuations over the years. In 2020, the interest coverage ratio was 3.47, indicating that the company generated enough operating income to cover its interest expenses 3.47 times.
By the end of 2021, the interest coverage ratio improved to 4.73, suggesting a stronger ability to meet interest obligations through operating income. However, there was a slight decline in 2022 to 3.88, which might indicate a decrease in operating income relative to interest expenses.
Further, in 2023 and 2024, the interest coverage ratios dropped to 2.77 and 2.83, respectively. These lower ratios suggest that Ball Corporation may be at a higher risk of facing challenges in meeting its interest payments with its operating income during these periods.
Overall, the trend in Ball Corporation's interest coverage suggests some variability in its ability to cover interest expenses over the years, indicating the importance of monitoring the company's financial performance and managing its debt obligations effectively.