Chemours Co (CC)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.50 | 0.47 | 0.47 | 0.47 | 0.45 | 0.47 | 0.49 | 0.49 | 0.51 | 0.53 | 0.55 | 0.57 | 0.58 | 0.62 | 0.58 | 0.55 | 0.54 | 0.56 | 0.54 |
| Debt-to-capital ratio | 0.84 | 0.84 | 0.82 | 0.75 | 0.76 | 0.73 | 0.75 | 0.76 | 0.78 | 0.79 | 0.82 | 0.82 | 0.83 | 0.85 | 0.87 | 0.86 | 0.85 | 0.83 | 0.84 | 0.83 |
| Debt-to-equity ratio | 5.41 | 5.22 | 4.46 | 2.93 | 3.24 | 2.73 | 3.01 | 3.17 | 3.44 | 3.84 | 4.41 | 4.67 | 4.93 | 5.55 | 6.59 | 6.13 | 5.84 | 4.79 | 5.09 | 4.90 |
| Financial leverage ratio | 11.20 | 10.53 | 9.48 | 6.21 | 6.90 | 6.03 | 6.37 | 6.45 | 6.98 | 7.55 | 8.33 | 8.44 | 8.71 | 9.49 | 10.71 | 10.61 | 10.53 | 8.91 | 9.03 | 9.04 |
The solvency ratios of Chemours Co show a fluctuating trend over the periods analyzed.
1. Debt-to-assets ratio: The company's debt-to-assets ratio has been relatively stable around the range of 0.45 to 0.62, indicating that approximately 45% to 62% of the company's assets have been financed by debt. Although there is some variation, the ratio has not shown a significant upward or downward trend.
2. Debt-to-capital ratio: Chemours Co's debt-to-capital ratio has also demonstrated stability, hovering around 0.73 to 0.87. This suggests that the company has typically relied on debt for about 73% to 87% of its total capital structure. The ratio appears to fluctuate within a narrow range, showing consistent capital structure management.
3. Debt-to-equity ratio: The company's debt-to-equity ratio has displayed more variability compared to the other solvency ratios. It has ranged from 2.73 to 6.59, indicating that for each dollar of equity, Chemours Co has had between $2.73 and $6.59 of debt. There is a notable increase in leverage towards the end of the period, with the ratio peaking at 6.59 in June 2020, then gradually decreasing.
4. Financial leverage ratio: The financial leverage ratio, which reflects the company's total assets relative to its equity, shows a similar trend to the debt-to-equity ratio. The ratio has ranged from 6.03 to 11.20, with higher values indicating higher financial leverage. Chemours Co's leverage ratio has fluctuated over the periods analyzed, with some upticks followed by decreases in leverage.
In summary, the solvency ratios of Chemours Co suggest a stable debt-financing pattern in terms of its assets and capital structure. However, there has been some fluctuation in the debt-to-equity and financial leverage ratios, indicating varying levels of leverage used by the company to support its operations and investments.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.48 | -0.65 | 0.82 | 4.89 | 5.57 | 7.74 | 7.18 | 5.87 | 4.68 | 3.09 | 2.15 | 2.00 | 1.86 | -0.40 | -0.25 | 0.27 | 0.41 | 3.53 | 4.51 | 5.56 |
Interest coverage is a financial ratio used to evaluate a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
Looking at the historical interest coverage ratios of Chemours Co from December 2019 to December 2023, we observe fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio indicates how many times a company can cover its interest obligations with its earnings.
In the latest period, the interest coverage ratio was -0.48, indicating that the company's earnings were insufficient to cover its interest expenses. This negative ratio raises concerns about the company's financial health and ability to meet its debt obligations.
On the other hand, in prior periods, the interest coverage ratio showed improvement, with values exceeding 1, such as 5.57 in December 2022 and 7.74 in September 2022. These higher ratios suggest that the company had strong earnings relative to its interest expenses during those periods.
Overall, the trend in Chemours Co's interest coverage ratios indicates variability in its ability to cover interest expenses over time, with recent periods showing challenges in meeting these obligations. Investors and creditors may view the company's ability to generate sufficient earnings to cover its interest payments as a key factor in assessing its financial stability and creditworthiness.