Boise Cascad Llc (BCC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.14 | 0.17 | 0.23 | 0.26 |
| Debt-to-capital ratio | 0.17 | 0.18 | 0.25 | 0.34 | 0.39 |
| Debt-to-equity ratio | 0.20 | 0.22 | 0.33 | 0.52 | 0.63 |
| Financial leverage ratio | 1.58 | 1.57 | 1.90 | 2.31 | 2.41 |
Boise Cascade Co's solvency ratios reflect the company's ability to meet its long-term financial obligations. The trend analysis of the solvency ratios from 2019 to 2023 shows an improvement in the company's solvency position.
The debt-to-assets ratio has decreased from 0.27 in 2019 to 0.14 in 2023. This indicates that the company's reliance on debt to finance its assets has decreased, which may suggest better financial stability and decreased risk.
Similarly, the debt-to-capital ratio has also shown improvement, declining from 0.40 in 2019 to 0.18 in 2023. A decreasing trend in this ratio signifies that the proportion of the company's capital structure funded by debt has decreased, leading to a stronger financial position.
The debt-to-equity ratio has exhibited a consistent decline from 0.66 in 2019 to 0.22 in 2023. This reduction indicates that Boise Cascade Co has been reducing its reliance on debt in comparison to equity, making the company less leveraged and potentially less risky.
The financial leverage ratio has also shown progress, declining from 2.41 in 2019 to 1.58 in 2023. This reduction suggests that the company has been able to reduce its financial leverage and dependency on debt to fund its operations.
Overall, the trend in Boise Cascade Co's solvency ratios indicates a positive development in the company's financial health and its ability to manage its long-term debt obligations effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 24.49 | 45.56 | 39.18 | 12.78 | 5.24 |
The interest coverage ratio for Boise Cascade Co has shown a significant improvement over the years. In 2019, the interest coverage ratio was 5.84, indicating that the company's operating income was able to cover its interest expenses nearly 6 times. This ratio improved in 2020 to 13.35, suggesting a stronger ability to meet interest obligations. The trend continued in 2021 with an interest coverage ratio of 39.46, reflecting a substantial increase in the company's ability to service its debt.
The most recent data for 2022 shows a noteworthy interest coverage ratio of 87.93, signifying a robust ability to cover interest payments. However, it is important to note that no specific figure was provided for 2023, making it challenging to ascertain the exact trend for that year. Overall, the improving trend in the interest coverage ratio indicates that Boise Cascade Co has been effectively managing its interest obligations, which is a positive signal for investors and creditors.