Chemours Co (CC)
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 | 12.44 | 11.20 | 6.90 | 6.98 | 8.71 |
Based on the provided data for Chemours Co, the solvency ratios indicate a strong financial position in terms of debt management and leverage.
1. Debt-to-Assets Ratio: This ratio measures the proportion of a company's assets financed by debt. Chemours Co consistently reports a debt-to-assets ratio of 0.00 across the years 2020 to 2024. This signifies that the company has not relied on debt to finance its assets, indicating a low risk of insolvency due to debt obligations.
2. Debt-to-Capital Ratio: The debt-to-capital ratio reflects the extent of a company's capital structure that is financed through debt. The data shows a consistent debt-to-capital ratio of 0.00 for Chemours Co from 2020 to 2024. This implies that the company has a balanced capital structure with minimal reliance on debt financing.
3. Debt-to-Equity Ratio: The debt-to-equity ratio compares a company's total debt to its shareholders' equity. Similar to the previous ratios, Chemours Co maintains a debt-to-equity ratio of 0.00 throughout the five-year period. This indicates that the company is not heavily leveraged and has a strong equity base.
4. Financial Leverage Ratio: The financial leverage ratio measures the extent to which a company uses debt to finance its operations and growth. Chemours Co has varying financial leverage ratios over the years, with values decreasing from 8.71 in 2020 to 6.98 in 2021 and to 6.90 in 2022, then increasing to 11.20 in 2023 and 12.44 in 2024. The rising trend in recent years indicates an increase in the company's reliance on debt to support its operations and investments.
In summary, the solvency ratios paint a picture of a financially stable and conservative approach adopted by Chemours Co, as evidenced by the low debt levels in relation to assets, capital, and equity. However, the increasing financial leverage ratio in the later years suggests a heightened reliance on debt, which may warrant monitoring to ensure sustainable financial health in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.48 | -0.53 | 5.60 | 4.80 | 2.13 |
The interest coverage ratio is a financial metric used to assess a company's ability to meet its interest obligations from its operating income.
For Chemours Co, the interest coverage ratio has shown fluctuations over the years as follows:
- As of December 31, 2020, the interest coverage ratio was 2.13, indicating that the company's operating income was able to cover its interest expenses 2.13 times over.
- By December 31, 2021, the interest coverage improved to 4.80, suggesting a better ability to meet interest payments from operating income.
- The trend continued to improve as of December 31, 2022, with an interest coverage ratio of 5.60, reflecting healthy coverage of interest expenses by operating income.
- However, as of December 31, 2023, the interest coverage ratio turned negative at -0.53, indicating that the operating income was insufficient to cover the interest obligations. This may raise concerns about the company's financial health and ability to service its debt.
- By December 31, 2024, the interest coverage ratio improved slightly to 1.48, but it still indicates a relatively low coverage of interest payments by operating income.
In conclusion, while Chemours Co demonstrated improvements in its interest coverage ratio over the years, the negative ratio in 2023 raises significant red flags regarding the company's ability to meet its interest obligations from operating income. Monitoring this ratio is crucial for assessing the company's financial stability and debt repayment capacity.