Commercial Metals Company (CMC)
Solvency ratios
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.59 | 1.58 | 1.58 | 1.58 | 1.61 | 1.65 | 1.75 | 1.85 | 1.90 | 1.94 | 1.92 | 1.90 | 2.02 | 2.04 | 2.02 | 2.08 | 2.16 | 2.20 | 2.22 | 2.24 |
Commercial Metals Company has consistently maintained a strong solvency position as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios, which have all been at 0.00 over the periods analyzed. This signifies that the company finances its operations primarily through equity rather than debt.
However, the financial leverage ratio has shown an increasing trend over the periods, reaching a peak of 2.24 in the most recent period. This indicates an increase in the company's financial leverage or reliance on debt financing compared to equity. While the current financial leverage ratio is still within a reasonable range, the upward trend may warrant further monitoring to ensure the company's overall financial stability and flexibility in the long term.
Coverage ratios
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 14.27 | 17.81 | 22.82 | 26.96 | 28.96 | 27.52 | 27.01 | 31.20 | 30.88 | 29.44 | 25.27 | 15.59 | 11.29 | 8.89 | 7.03 | 6.83 | 7.02 | 6.93 | 6.94 | 5.95 |
The interest coverage ratio of Commercial Metals Company has shown a generally favorable trend over the past few quarters, indicating the company's ability to meet its interest obligations. The ratio has consistently been above 1, indicating that the company's operating income is sufficient to cover its interest expenses.
The interest coverage ratio has improved steadily from a low of 5.95 in November 2019 to a high of 31.20 in November 2022. This upward trend suggests that the company's profitability and cash flow generation have been strong, providing a cushion against financial risk.
However, it is worth noting that there have been fluctuations in the interest coverage ratio, with occasional dips such as in the most recent quarter where it decreased to 14.27. While the ratio remains at healthy levels, management should continue to monitor it closely to ensure sustainable financial health and adequate coverage of interest expenses.