Core Laboratories NV (CLB)

Core Laboratories NV's solvency ratios show a favorable trend over the four quarters of the year 2024. The Debt-to-assets ratio decreased from 0.27 in March to 0.21 in December, indicating that the company has reduced its reliance on debt to finance its assets.

Similarly, the Debt-to-capital ratio declined from 0.41 to 0.33 over the same period, showing an improvement in the company's ability to cover its long-term obligations with both debt and equity.

The Debt-to-equity ratio also decreased from 0.69 to 0.50, indicating that Core Laboratories NV has reduced its financial leverage and become less reliant on debt financing relative to equity.

The Financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, also declined steadily from 2.53 to 2.34 throughout the year. This suggests that the company is becoming more financially stable and less risky as it reduces its debt levels compared to its equity.

Overall, the downward trend in these solvency ratios suggests that Core Laboratories NV is effectively managing its debt levels and maintaining a healthy balance sheet, which is a positive indicator for its financial stability and ability to meet its long-term financial obligations.

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Coverage ratios

Interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Core Laboratories NV's interest coverage ratio for the periods ending March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, are 3.56, 3.35, 3.72, and 4.67, respectively.

The trend shows a slight fluctuation in the interest coverage ratio throughout the year. A ratio above 1 indicates that the company is generating enough earnings to cover its interest obligations. In Core Laboratories NV's case, the interest coverage ratio is consistently above 3 in each period, indicating that the company has a comfortable level of earnings to cover its interest expenses.

Furthermore, the increasing trend in the interest coverage ratio throughout the year, reaching 4.67 in December 31, 2024, suggests an improving ability to meet interest obligations. This positive trend indicates that the company may have become more profitable or more efficient in managing its interest expenses over the year.

Overall, Core Laboratories NV's interest coverage ratio demonstrates a relatively healthy financial position in terms of its ability to meet interest payments on its debt.