CNH Industrial N.V. (CNH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.61 | 5.76 | 5.69 | 7.29 | 9.93 |
CNH Industrial N.V. exhibits strong solvency based on the provided ratios.
1. Debt-to-assets ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 across the years indicated. This implies that CNH Industrial N.V. has financed its assets without relying on debt funding, indicating a low risk of financial distress.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been consistently at 0.00 over the years. This reaffirms that the company has not heavily relied on debt to finance its operations and investments.
3. Debt-to-equity ratio: The debt-to-equity ratio has also remained at 0.00 across the years specified. This indicates that the company's financial structure is predominantly equity-funded, signaling financial stability and a lower risk of insolvency.
4. Financial leverage ratio: The financial leverage ratio has shown a declining trend from 9.93 in 2020 to 5.61 in 2024. A decreasing trend in this ratio suggests that CNH Industrial N.V. is becoming less reliant on debt financing in relation to its equity, which is a positive indicator of financial strength and stability.
Overall, the solvency ratios of CNH Industrial N.V. reflect a conservative financial structure with minimal debt exposure, highlighting the company's ability to meet its financial obligations and withstand economic uncertainties effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.90 | 2.98 | 4.55 | 4.45 | 0.30 |
The interest coverage ratio for CNH Industrial N.V. has shown variability over the past five years. Starting at a low of 0.30 in December 31, 2020, the company's ability to cover its interest expenses improved significantly to 4.45 in December 31, 2021, and further increased to 4.55 in December 31, 2022. However, there was a slight decrease to 2.98 in December 31, 2023, indicating a potential dip in the company's ability to cover its interest obligations. The ratio further dropped to 1.90 by December 31, 2024, suggesting a lower capacity to meet interest payments from its earnings. Overall, the interest coverage ratio for CNH Industrial N.V. seems to have experienced fluctuations, impacting the company's financial stability and ability to service its debt obligations effectively.