Bunge Limited (BG)

Bunge Limited has consistently shown a strong solvency position based on its solvency ratios. The Debt-to-assets ratio has remained at 0.00 for the years 2020 to 2024, indicating that the company has financed its assets without relying on significant debt. This reflects a low financial risk associated with the company's asset base.

Similarly, the Debt-to-capital and Debt-to-equity ratios have also been maintained at 0.00 across the same period, suggesting that Bunge Limited has effectively managed its debt levels in relation to its capital and equity structure. These ratios signify a conservative approach to leverage and a higher level of financial stability.

The Financial leverage ratio has displayed a declining trend from 3.90 in 2020 to 2.51 in 2024. This downward trend indicates that the company has been reducing its reliance on debt to finance its operations over the years, which is a positive sign for investors and creditors. A lower financial leverage ratio generally implies lower financial risk and better solvency.

Overall, the solvency ratios of Bunge Limited demonstrate a prudent and sound financial position, with minimal reliance on debt and a decreasing trend in leverage, reflecting a strong ability to meet its financial obligations and maintain sustainability in the long term.

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Coverage ratios

Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. Looking at the data provided for Bunge Limited, we can see a fluctuation in the interest coverage ratio over the years.

As of December 31, 2020, Bunge Limited had an interest coverage ratio of 6.33. This suggests that the company's operating income was able to cover its interest expenses approximately 6.33 times, indicating a moderate level of ability to meet its interest obligations.

Subsequently, in December 31, 2021, the interest coverage ratio improved significantly to 11.56. This substantial increase indicates a stronger ability to cover interest payments with operating income, reflecting positively on the company's financial health and stability.

However, in the following years, there was a decline in the interest coverage ratio, with ratios of 6.13, 6.91, and 4.24 as of December 31, 2022, 2023, and 2024 respectively. These lower ratios suggest that Bunge Limited may be facing challenges in meeting its interest obligations with its operating income, which could potentially impact the company's financial performance and liquidity position.

Overall, while the significant increase in interest coverage ratio in 2021 is a positive indicator, the subsequent declines in the ratio in the following years highlight the importance of closely monitoring Bunge Limited's ability to manage its interest expenses relative to its operating income in order to ensure financial stability and sustainability.