California Resources Corp (CRC)
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 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.18 | 0.18 | 0.18 | 0.19 | 0.00 | 0.00 | 0.20 | 0.70 | 0.55 | 0.65 | 0.66 |
| Debt-to-capital ratio | 0.20 | 0.22 | 0.22 | 0.22 | 0.24 | 0.24 | 0.28 | 0.29 | 0.26 | 0.36 | 0.40 | 0.36 | 0.34 | — | — | — | 1.09 | 1.09 | 1.10 | 1.10 |
| Debt-to-equity ratio | 0.24 | 0.29 | 0.28 | 0.28 | 0.32 | 0.32 | 0.39 | 0.41 | 0.35 | 0.56 | 0.66 | 0.56 | 0.52 | — | — | — | — | — | — | — |
| Financial leverage ratio | 1.80 | 1.93 | 1.85 | 1.91 | 2.13 | 2.15 | 2.65 | 2.81 | 2.28 | 3.18 | 3.63 | 3.04 | 2.70 | — | — | — | — | — | — | — |
California Resources Corporation's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable over the past five quarters, ranging from 0.14 to 0.15, indicating that the company relies on debt for approximately 14% to 15% of its total assets.
Similarly, the debt-to-capital ratio has also shown consistency, fluctuating between 0.20 and 0.24. This ratio reveals that debt constitutes around 20% to 24% of the company's total capital structure. The debt-to-equity ratio has exhibited a decreasing trend, declining from 0.32 in Q4 2022 to 0.24 in Q4 2023. This signifies a reduction in the proportion of debt relative to equity within the company's capitalization.
Additionally, the financial leverage ratio has decreased from 2.13 in Q4 2022 to 1.80 in Q4 2023. This suggests that the company has effectively reduced its reliance on debt to finance its operations and investments, potentially improving its financial stability.
Overall, California Resources Corporation's solvency ratios reflect a reasonably healthy financial position with well-managed debt levels. The decreasing trend in the debt-to-equity ratio and financial leverage ratio indicates improved solvency and reduced financial risk over the analyzed period.
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 | 14.43 | 11.53 | 22.96 | 25.81 | 15.32 | 19.09 | 10.06 | 3.24 | 5.39 | -2.58 | -3.97 | -2.15 | -8.68 | -5.78 | -4.24 | -3.45 | 1.12 | 2.03 | 2.12 | 1.86 |
The interest coverage ratio for California Resources Corporation has been fluctuating over the five quarters presented. In Q2 2023 and Q1 2023, the company demonstrated strong interest coverage ratios of 22.80 and 25.63, respectively, indicating the company's ability to comfortably meet its interest obligations with its operating income. However, in the subsequent quarters, the ratio decreased to 13.75 in Q4 2023 and 11.35 in Q3 2023, although they still suggest that the company's operating income is sufficient to cover its interest expenses. Overall, the trend in interest coverage suggests some variability in the company's ability to cover its interest payments, but the ratios remain at levels suggesting a healthy financial position in relation to this aspect of its operations.