CF Industries Holdings Inc (CF)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.22 | 0.28 | 0.31 | 0.33 |
| Debt-to-capital ratio | 0.34 | 0.37 | 0.52 | 0.56 | 0.58 |
| Debt-to-equity ratio | 0.52 | 0.59 | 1.08 | 1.27 | 1.37 |
| Financial leverage ratio | 2.51 | 2.64 | 3.86 | 4.11 | 4.20 |
CF Industries Holdings Inc has shown a consistent improvement in its solvency ratios over the past five years. The debt-to-assets ratio has decreased steadily from 0.33 in 2019 to 0.21 in 2023, indicating that the company has reduced its reliance on debt to finance its assets. The decreasing trend is also evident in the debt-to-capital ratio, which has decreased from 0.58 in 2019 to 0.34 in 2023.
Furthermore, the debt-to-equity ratio has shown a significant improvement, declining from 1.37 in 2019 to 0.52 in 2023. This indicates that the company has been able to lower its debt relative to its equity, which reflects positively on its financial stability. The financial leverage ratio has also decreased consistently over the years, from 4.20 in 2019 to 2.51 in 2023, showing a decline in the company's dependence on debt financing.
Overall, these solvency ratios suggest that CF Industries Holdings Inc has been effectively managing its debt levels and improving its financial health over the years, which bodes well for its long-term sustainability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 14.87 | 15.69 | 9.40 | 3.48 | 4.23 |
CF Industries Holdings Inc's interest coverage has shown a fluctuating trend over the past five years. In 2023, the interest coverage data is not available. However, in 2022, the company had a healthy interest coverage ratio of 20.90, indicating that CF Industries generated sufficient earnings to cover its interest expenses nearly 21 times. This suggests a strong ability to meet its interest obligations comfortably.
In the previous years, the interest coverage ratios were 12.71 in 2021, 3.76 in 2020, and 4.29 in 2019. The significant increase in interest coverage from 2019 to 2022 indicates that CF Industries improved its ability to service its debt obligations through increased earnings or lower interest expenses.
It is important to note that the unavailability of data for 2023 makes it challenging to assess the current financial health of the company. However, the positive trend observed in the previous years suggests that CF Industries has demonstrated an improving ability to cover its interest payments, contributing to a more stable financial position.