CF Industries Holdings Inc (CF)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.77 | 2.67 | 2.52 | 2.55 | 2.51 | 2.37 | 2.33 | 2.46 | 2.64 | 2.99 | 2.93 | 3.44 | 3.86 | 4.00 | 3.70 | 3.97 | 4.11 | 4.22 | 4.16 | 4.56 |
CF Industries Holdings Inc has consistently maintained a strong solvency position as indicated by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across the period from March 31, 2020, to December 31, 2024. This suggests that the company has no debt obligations in relation to its assets, capital, or equity during this period.
The Financial leverage ratio, which provides an indication of the company's financial risk and the extent of its leverage, has shown a decreasing trend over the same period. The ratio decreased from 4.56 on March 31, 2020, to 1.77 on December 31, 2024. This declining trend indicates that CF Industries Holdings Inc has been reducing its financial leverage and dependency on debt to finance its operations, which is a positive sign for the company's long-term solvency and financial stability.
Overall, based on the solvency ratios analyzed, CF Industries Holdings Inc appears to be in a strong financial position with minimal debt levels and decreasing financial leverage, which bodes well for its ability to meet its financial obligations and sustain long-term growth.
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 | 13.09 | 12.97 | 11.85 | 12.37 | 15.82 | 22.46 | 24.35 | 23.98 | 13.66 | 12.77 | 10.77 | 8.31 | 9.42 | 4.18 | 4.90 | 3.93 | 3.54 | 3.39 | 3.74 | 4.20 |
CF Industries Holdings Inc's interest coverage ratio has shown fluctuations over the reporting periods provided in the data. The interest coverage ratio is calculated as earnings before interest and taxes (EBIT) divided by interest expenses. A higher ratio indicates that the company has more earnings available to cover its interest obligations.
Looking at the data, the interest coverage ratio ranged from a low of 3.39 in September 2020 to a high of 24.35 in June 2023. This indicates that the company had varying levels of ability to cover its interest payments over the periods. Generally, an interest coverage ratio above 2 is considered healthy, as it suggests the company is generating sufficient earnings to meet its interest obligations.
The interest coverage ratio for CF Industries Holdings Inc improved significantly in the latter part of the data series, reaching a peak of 24.35 in June 2023 before declining to 12.37 in March 2024. The substantial increase in the ratio indicates that the company's earnings significantly exceeded its interest expenses during that period.
Overall, the trend in CF Industries Holdings Inc's interest coverage ratio shows some variability but generally demonstrates an ability to cover its interest payments comfortably, with a notable improvement in recent years. Investors and creditors may view this positively as it suggests a lower risk of default on interest payments.