Church & Dwight Company Inc (CHD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.31 | 0.20 | 0.24 | 0.27 |
| Debt-to-capital ratio | 0.36 | 0.43 | 0.33 | 0.38 | 0.40 |
| Debt-to-equity ratio | 0.57 | 0.74 | 0.50 | 0.60 | 0.68 |
| Financial leverage ratio | 2.22 | 2.39 | 2.47 | 2.45 | 2.50 |
Church & Dwight Co., Inc.'s solvency ratios indicate a favorable financial position over the past five years. The debt-to-assets ratio has shown a decreasing trend from 0.31 in 2019 to 0.28 in 2023, suggesting the company has been successful in reducing its reliance on debt financing in relation to its total assets.
Similarly, the debt-to-capital ratio has also displayed a decreasing trend from 0.44 in 2019 to 0.38 in 2023, indicating a lower proportion of debt in the company's capital structure compared to total capital.
The debt-to-equity ratio has followed a similar pattern, declining from 0.77 in 2019 to 0.62 in 2023, signaling a reduction in the company's financial leverage and a stronger equity position relative to debt.
Moreover, the financial leverage ratio has decreased from 2.50 in 2019 to 2.22 in 2023, illustrating an improvement in the company's ability to meet its financial obligations with lower levels of debt. Overall, the declining trend in these solvency ratios reflects Church & Dwight Co., Inc.'s improved financial stability and reduced risk of financial distress.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.72 | 6.84 | 19.93 | 16.96 | 11.51 |
The interest coverage of Church & Dwight Co., Inc. has fluctuated over the past five years. In 2023, the interest coverage ratio increased to 9.61 from 6.81 in 2022, indicating the company's improved ability to cover its interest expenses with its operating income. However, the current ratio is still lower than the levels seen in 2021 (19.97) and 2020 (16.99).
The company experienced a significant drop in interest coverage in 2020 compared to the previous year, but managed to recover in 2021. Despite the fluctuations, Church & Dwight Co., Inc. has generally maintained a satisfactory level of interest coverage over the period analyzed, with the ratios consistently above 1, indicating that the company's operating income is sufficient to cover its interest expenses.
Overall, the trend in interest coverage for Church & Dwight Co., Inc. suggests that the company has managed its debt obligations effectively in recent years, maintaining a healthy balance between its earnings and interest payments.