Peabody Energy Corp (BTU)
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 | 1.63 | 1.68 | 1.74 | 2.81 | 5.02 |
Peabody Energy Corp's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the years from 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio were all reported as 0.00 throughout this period, implying that the company's total debt was virtually zero in relation to its total assets, capital, and equity.
Additionally, the Financial leverage ratio, which measures the extent to which a company uses debt to finance its operations, showed a decreasing trend from 5.02 in 2020 to 1.63 in 2024. This decline indicates that Peabody Energy Corp has been reducing its reliance on debt financing over the years, which is a positive sign for its solvency and financial stability.
Overall, based on these solvency ratios, Peabody Energy Corp appears to have a robust balance sheet and a conservative financial structure, with a minimal debt burden relative to its resources, capital, and equity, which bodes well for the company's ability to meet its financial obligations and weather any economic challenges in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 12.00 | 19.81 | 10.11 | 3.02 | -12.57 |
Peabody Energy Corp's interest coverage ratio has shown significant improvement over the last few years. The ratio was negative at -12.57 on December 31, 2020, indicating that the company had insufficient earnings to cover its interest expenses. However, by December 31, 2021, the interest coverage ratio improved to 3.02, showing that the company's earnings were able to cover its interest payments more comfortably.
This positive trend continued in the following years, with the interest coverage ratio reaching 10.11 on December 31, 2022, and further increasing to 19.81 on December 31, 2023. This demonstrates a substantial strengthening of Peabody Energy Corp's ability to meet its interest obligations using its operating earnings.
Although there was a slight decrease in the interest coverage ratio to 12.00 on December 31, 2024, the overall trend indicates that the company's financial position has improved significantly, as it now has a more comfortable buffer to cover its interest expenses. This enhanced interest coverage ratio suggests that Peabody Energy Corp is in a better position to manage its debt and financial obligations.