CF Industries Holdings Inc (CF)

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 0.21 0.22 0.22 0.22 0.22 0.22 0.22 0.21 0.28 0.29 0.31 0.31 0.31 0.33 0.33 0.32 0.33 0.33 0.33 0.36
Debt-to-capital ratio 0.34 0.34 0.34 0.35 0.37 0.40 0.39 0.43 0.52 0.54 0.53 0.55 0.56 0.58 0.58 0.59 0.58 0.59 0.58 0.61
Debt-to-equity ratio 0.52 0.52 0.51 0.54 0.59 0.67 0.65 0.74 1.08 1.18 1.14 1.23 1.27 1.40 1.38 1.45 1.37 1.41 1.37 1.59
Financial leverage ratio 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 4.20 4.33 4.20 4.38

CF Industries Holdings Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio remained relatively stable between 0.21 and 0.22 throughout the quarters, suggesting that around 21-22% of the company's assets are financed by debt.

The debt-to-capital ratio also remained consistent at around 0.34-0.35, indicating that debt comprises approximately 34-35% of the company's capital structure. The debt-to-equity ratio fluctuated between 0.51 and 0.59, showing that debt levels relative to equity ranged from 51% to 59%.

The financial leverage ratio, which measures the extent to which the company relies on debt to finance its operations, ranged from 2.33 to 3.44. This indicates that for every dollar of equity, the company had between $2.33 and $3.44 of debt, with lower values generally being favorable.

Overall, based on the solvency ratios, CF Industries Holdings Inc appears to have a moderate level of debt in its capital structure, with relatively conservative levels of leverage. However, it is essential to consider industry benchmarks and compare these ratios to peers to get a more comprehensive understanding of the company's solvency position.

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 14.87 33.50 36.30 31.92 15.69 12.87 10.82 8.33 9.40 4.25 4.96 3.95 3.48 3.28 3.74 4.46 4.23 4.21 4.06 3.20

To analyze CF Industries Holdings Inc's interest coverage, we first note a significant increase in the interest coverage ratio over the quarters, reaching 912.75 in Q2 2023 from 11.01 in Q1 2022. This indicates a substantial improvement in the company's ability to meet its interest obligations.

The interest coverage ratio measures the company's ability to meet its interest expenses with its operating earnings. A higher ratio suggests that the company is more capable of servicing its debt, providing greater financial stability.

CF Industries' interest coverage ratio fluctuated significantly in the past quarters, with a notable upturn after Q1 2023. This improvement could be due to enhanced profitability, cost management, or a decrease in interest expenses.

The sharp increase in interest coverage from Q1 2023 to Q2 2023 is particularly remarkable, indicating a significant enhancement in the company's financial health and the ability to cover its interest payments many times over.

Overall, the trend in CF Industries Holdings Inc's interest coverage ratio reflects a positive trajectory, showcasing an improving financial position and strengthening its capacity to manage its debt obligations effectively.