Crown Holdings Inc (CCK)

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 0.44 0.44 0.40 0.45 0.45 0.44 0.48 0.49 0.47 0.47 0.38 0.39 0.44 0.38 0.47 0.49 0.48 0.51 0.52 0.56
Debt-to-capital ratio 0.69 0.72 0.70 0.73 0.74 0.73 0.76 0.78 0.79 0.80 0.76 0.76 0.76 0.71 0.78 0.77 0.78 0.81 0.82 0.84
Debt-to-equity ratio 2.20 2.64 2.37 2.68 2.78 2.67 3.13 3.47 3.67 4.03 3.14 3.11 3.17 2.47 3.48 3.31 3.65 4.21 4.41 5.19
Financial leverage ratio 5.02 5.96 5.93 5.95 6.24 6.12 6.52 7.10 7.73 8.54 8.28 7.93 7.25 6.55 7.38 6.81 7.59 8.19 8.41 9.33

The solvency ratios of Crown Holdings Inc show a favorable trend over the period analyzed. The Debt-to-assets ratio has decreased steadily from 0.56 as of March 31, 2020, to 0.44 as of December 31, 2024, indicating an improvement in the company's ability to cover its liabilities with its assets.

Similarly, the Debt-to-capital ratio has shown a consistent decline from 0.84 in March 31, 2020, to 0.69 in December 31, 2024, reflecting a decreasing reliance on debt in the company's capital structure.

The Debt-to-equity ratio also exhibits a downward trend, falling from 5.19 in March 31, 2020, to 2.20 in December 31, 2024, indicating a strengthening shareholder equity position relative to debt.

Furthermore, the Financial leverage ratio has decreased from 9.33 in March 31, 2020, to 5.02 in December 31, 2024, reflecting a reduction in the company's reliance on debt financing.

Overall, the solvency ratios of Crown Holdings Inc suggest an increasingly stable financial position with improving debt management and leverage ratios.

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 3.08 2.73 2.53 2.42 2.54 2.68 2.74 3.47 4.42 -1.00 -1.11 -1.52 -1.44 4.42 4.77 4.32 3.68 3.34 3.01 3.04

The interest coverage ratio measures a company's ability to cover its interest expenses with operating income. Interest coverage is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher ratio indicates that the company is more capable of meeting its interest obligations.

Analyzing Crown Holdings Inc's interest coverage ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The interest coverage ratio started at 3.04 in March 2020 and generally increased over the next few quarters, reaching a peak of 4.77 in June 2021. This suggests an improvement in the company's ability to cover its interest expenses with operating income during this period.

However, the ratio declined significantly in the last quarters of 2021 and continued to deteriorate into negative territory, indicating that Crown Holdings Inc may have faced challenges in covering its interest expenses with its operating income during this period. This negative trend persisted until the third quarter of 2022.

From December 31, 2022, onwards, the interest coverage ratio improved, reaching 3.08 by December 31, 2024. This indicates a recovery in Crown Holdings Inc's ability to cover its interest obligations with its operating income.

Overall, fluctuations in the interest coverage ratio of Crown Holdings Inc suggest varying levels of financial health and operational efficiency throughout the period under review. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to manage its debt obligations effectively.