California Resources Corp (CRC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.15 | 0.15 | 0.70 | 0.63 |
| Debt-to-capital ratio | 0.20 | 0.24 | 0.26 | 1.09 | 1.09 |
| Debt-to-equity ratio | 0.24 | 0.32 | 0.35 | — | — |
| Financial leverage ratio | 1.80 | 2.13 | 2.28 | — | — |
California Resources Corporation's solvency ratios show positive trends over the past three years, indicating improved financial health and a stronger ability to meet its financial obligations.
The debt-to-assets ratio has decreased from 0.15 in 2021 to 0.14 in 2023, which suggests that the company has reduced its reliance on debt to finance its operations and acquisitions, while maintaining a healthy level of assets.
Similarly, the debt-to-capital ratio has shown a consistent decline from 0.26 in 2021 to 0.20 in 2023, indicating that the company has been able to lower its debt relative to its total capital, which includes both debt and equity.
The debt-to-equity ratio has also improved from 0.35 in 2021 to 0.24 in 2023, signaling that California Resources Corporation has reduced its financial leverage and is relying more on equity financing than debt financing.
Furthermore, the financial leverage ratio has decreased from 2.28 in 2021 to 1.80 in 2023, reflecting a reduction in the company's overall financial risk and leverage.
Overall, the decreasing trends in these solvency ratios indicate that California Resources Corporation has made significant strides in strengthening its financial position and managing its debt levels effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Interest coverage | 14.43 | 15.32 | 5.43 | 1.12 | 2.03 |
California Resources Corporation's interest coverage ratio has shown a positive trend over the past three years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio was 13.75 at the end of 2023, 14.23 at the end of 2022, and 4.04 at the end of 2021.
A higher interest coverage ratio suggests that the company is generating sufficient operating income to cover its interest expenses, which is a positive indicator of its financial health and ability to manage debt. The consistent improvement in the interest coverage ratio over the years is a good sign of the company's improving financial performance and stability.
Overall, California Resources Corporation's interest coverage ratio reflects a strong ability to meet its interest payments, indicating a lower risk of default and potentially higher creditworthiness in the eyes of investors and lenders.