Church & Dwight Company Inc (CHD)

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	0.26	0.28	0.28	0.29	0.31	0.25	0.25	0.20	0.20	0.16	0.21	0.25	0.24	0.26	0.26	0.24	0.27	0.27	0.27	0.25
Debt-to-capital ratio	0.36	0.37	0.38	0.40	0.43	0.36	0.37	0.32	0.33	0.26	0.31	0.36	0.38	0.36	0.38	0.39	0.40	0.41	0.41	0.38
Debt-to-equity ratio	0.57	0.59	0.61	0.65	0.74	0.57	0.59	0.47	0.50	0.35	0.45	0.56	0.60	0.56	0.60	0.64	0.68	0.71	0.69	0.60
Financial leverage ratio	2.22	2.15	2.18	2.25	2.39	2.25	2.38	2.33	2.47	2.10	2.18	2.30	2.45	2.20	2.31	2.66	2.50	2.58	2.56	2.38

Church & Dwight Co., Inc. has maintained relatively stable solvency ratios over the quarters analyzed. The debt-to-assets ratio has consistently hovered around 0.28 to 0.29, indicating that approximately 28% to 29% of the company's assets are financed by debt. This suggests a conservative approach to leverage, with a significant portion of assets being funded by equity.

The debt-to-capital ratio has also remained stable, ranging from 0.37 to 0.40, showing that debt accounts for around 37% to 40% of the company's capital structure. This ratio provides insight into the overall financing structure of the company and its ability to cover financial obligations through a mix of debt and equity.

In terms of the debt-to-equity ratio, Church & Dwight Co., Inc. has demonstrated a decreasing trend from 0.77 to 0.62, indicating a lower reliance on debt in relation to equity over the quarters. This suggests that the company has been reducing its financial risk and improving its financial stability by relying more on equity financing.

Furthermore, the financial leverage ratio has also shown a declining trend from 2.39 to 2.22, indicating that the company's reliance on debt to finance its operations has decreased over time. A lower financial leverage ratio signifies a stronger equity position relative to debt and indicates lower financial risk for the company.

Overall, the solvency ratios of Church & Dwight Co., Inc. reflect a prudent approach to managing its capital structure and financial risk, with a gradual shift towards a more equity-driven financing model.

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	9.72	5.81	5.97	6.17	6.84	13.55	16.51	18.63	19.93	19.82	19.16	17.45	16.96	15.99	14.05	12.76	11.51	11.25	11.01	10.65

The interest coverage ratio for Church & Dwight Co., Inc. fluctuated over the past eight quarters. In Q4 2023, the interest coverage ratio was 9.61, which indicates that the company earned 9.61 times the amount needed to cover its interest expense during that period. This represents a decline from the previous quarter, where the ratio was 5.74. Despite the decrease, the Q4 2023 ratio is still relatively strong compared to the ratios in Q3 and Q2 2023, which were 5.74 and 5.92, respectively.

Comparing the Q4 2023 ratio to the same period in the previous year (Q4 2022) when the ratio was 6.81, there has been an improvement. However, it is important to note that the interest coverage ratio has exhibited considerable variability over the quarters, ranging from a high of 18.68 in Q1 2022 to a low of 5.74 in Q3 2023. This fluctuation may suggest changes in the company's earnings or interest expenses over the periods analyzed.

Overall, Church & Dwight Co., Inc.'s interest coverage ratio in Q4 2023 of 9.61 indicates that the company continues to generate sufficient earnings to comfortably cover its interest obligations, although it has experienced some variability in this metric in recent quarters.