Bunge Limited (BG)
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 | 2.51 | 2.49 | 2.44 | 2.45 | 2.34 | 2.45 | 2.43 | 2.72 | 2.66 | 2.85 | 3.14 | 3.35 | 3.11 | 3.22 | 3.49 | 3.70 | 3.90 | 3.90 | 3.64 | 3.82 |
Bunge Limited has consistently maintained a very low level of debt in relation to its assets, capital, and equity over the analyzed periods. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00 throughout, indicating that the company's financial obligations are well-supported by its assets and equity.
Furthermore, the financial leverage ratio, which indicates the proportion of a company's assets that are financed by debt, has shown a declining trend over time. Starting at 3.82 in March 2020, the ratio decreased to 2.51 by December 2024. This reduction suggests that Bunge Limited has been gradually reducing its reliance on debt to finance its operations.
Overall, the solvency ratios indicate that Bunge Limited has a very strong financial position with minimal debt levels relative to its assets, capital, and equity. The decreasing trend in the financial leverage ratio also signifies an improving financial health and decreasing risk associated with debt.
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 | 4.24 | 4.35 | 4.66 | 6.04 | 6.91 | 6.68 | 7.05 | 6.21 | 6.13 | 6.09 | 7.59 | 9.04 | 11.56 | 12.56 | 10.88 | 11.61 | 6.33 | 3.43 | -2.57 | -3.52 |
The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
For Bunge Limited, the interest coverage ratio fluctuated significantly during the period from March 31, 2020, to December 31, 2024. The ratio started in negative territory in early 2020, indicating that the company's operating income was insufficient to cover its interest expenses.
There was a notable improvement in the interest coverage ratio throughout 2020 and 2021, reaching double digits by the end of 2021. This suggests that Bunge's operating income had increased substantially, enabling the company to comfortably cover its interest payments.
However, from 2022 onwards, the interest coverage ratio began to decline gradually, indicating a potential decrease in Bunge's ability to cover interest expenses from its operating income. Although the ratio remained above 4 in late 2024, the decreasing trend may signal a need for closer monitoring of the company's financial health and debt management.
Overall, while experiencing fluctuations, Bunge Limited demonstrated an improved ability to cover its interest payments in the mid to late 2020s, followed by a more recent decline that warrants attention and further analysis.