CF Industries Holdings Inc (CF)
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 | 2.70 | 2.51 | 2.64 | 3.86 | 4.11 |
CF Industries Holdings Inc's solvency ratios indicate a consistently strong financial position. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been at 0.00 for all the years analyzed, demonstrating that the company has not relied heavily on debt to finance its operations relative to its total assets, total capital, and shareholders' equity.
Furthermore, the financial leverage ratio has shown a decreasing trend over the years, going from 4.11 in 2020 to 2.70 in 2024. This decline indicates that the company has been decreasing its reliance on debt financing in relation to its equity, which is a positive sign of improved financial health and lower financial risk.
Overall, CF Industries Holdings Inc's solvency ratios suggest that the company has a strong financial position with little debt burden and effective management of its capital structure, which can be indicative of stability and sound financial management practices.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 13.68 | 15.99 | 15.81 | 11.90 | 3.59 |
CF Industries Holdings Inc's interest coverage ratio has shown a positive trend over the years, indicating an improving ability to cover its interest expenses. As of December 31, 2020, the interest coverage ratio was 3.59, suggesting the company's earnings were sufficient to cover its interest obligations 3.59 times.
By December 31, 2024, the interest coverage ratio had increased to 13.68, indicating a significant improvement in the company's ability to meet its interest payments from its operating income. This steady increase in the interest coverage ratio reflects a positive trend of the company's financial health and its ability to meet its debt obligations comfortably with its operating profits.
Overall, the rising trend in CF Industries Holdings Inc's interest coverage ratio from 2020 to 2024 suggests an enhanced ability to service its debt obligations, which is a positive indicator for investors and creditors evaluating the company's financial stability.