Ball Corporation (BALL)
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 | 2.36 | 2.82 | 2.74 | 2.72 | 5.12 | 4.97 | 5.17 | 5.53 | 5.64 | 5.76 | 6.04 | 5.37 | 5.35 | 5.35 | 5.17 | 5.06 | 5.47 | 5.75 | 5.87 | 6.13 |
Based on the solvency ratios provided for Ball Corporation, we can see that the company has consistently maintained a very strong solvency position over the years.
1. Debt-to-assets ratio: The ratio has consistently been at 0.00 for all the quarters, indicating that the company has no debt in relation to its total assets. This shows that Ball Corporation has not relied on debt financing to fund its operations, which is a positive indicator for solvency.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been at 0.00 for all the quarters. This suggests that the company's capital structure is not reliant on debt, and it is well-capitalized through equity and retained earnings.
3. Debt-to-equity ratio: The debt-to-equity ratio has also remained at 0.00 consistently, indicating that the company's equity base is sufficient to cover any potential debt obligations. This implies a strong financial position with a low level of financial risk.
4. Financial leverage ratio: The financial leverage ratio provides insight into the company's use of debt in its capital structure. Ball Corporation started with a relatively high financial leverage ratio of 6.13 in March 2020, but it progressively decreased over time, reaching 2.36 by December 31, 2024. This decreasing trend signifies a reduction in the company's reliance on debt financing and a move towards a more conservative and sustainable capital structure.
Overall, based on the solvency ratios analyzed, Ball Corporation demonstrates a strong financial position with minimal debt obligations relative to its assets, capital, and equity. The decreasing trend in the financial leverage ratio also signifies a prudent approach to managing its debt levels 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 | 2.86 | 3.17 | 2.80 | 2.62 | 2.65 | 2.44 | 3.21 | 3.73 | 5.36 | 6.56 | 5.75 | 5.85 | 4.74 | 4.45 | 4.95 | 4.20 | 3.47 | 3.02 | 2.34 | 2.66 |
The interest coverage ratio for Ball Corporation has shown fluctuations over the past few years, indicating the company's ability to meet its interest obligations from its operating income. The trend indicates improvement from March 2020 to June 2022, reaching a peak of 6.56 in September 2022. This suggests that the company's operating income was sufficient to cover its interest expenses with a comfortable margin during this period.
However, there was a slight decline in the interest coverage ratio in December 2022, followed by a notable decrease in March 2023 to 3.73. This downward trend continued until December 2024, where the interest coverage ratio settled at 2.86. The declining trend may suggest that the company's operating income might not be as robust in relation to its interest expenses during this period.
It is essential for investors and creditors to monitor Ball Corporation's interest coverage ratio closely, as a decreasing trend could indicate potential financial risks related to the company's debt servicing capabilities. Further analysis of the company's financial performance and overall debt structure would provide additional insights into its financial health and sustainability.