California Resources Corp (CRC)

Solvency ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Debt-to-assets ratio	0.16	0.16	0.26	0.14	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
Debt-to-capital ratio	0.24	0.24	0.36	0.21	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	—	—	—
Debt-to-equity ratio	0.32	0.32	0.57	0.26	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	2.02	2.04	2.19	1.87	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	—	—	—

Based on the provided data, let's analyze California Resources Corp solvency ratios:

1. Debt-to-assets ratio: This ratio measures the percentage of assets financed by debt. California Resources Corp's debt-to-assets ratio has been relatively stable, ranging from 0.14 to 0.26 over the past few years. A lower debt-to-assets ratio indicates a higher solvency level, and the company's ratio has generally been favorable.

2. Debt-to-capital ratio: This ratio signifies the proportion of the company's capital that is financed by debt. California Resources Corp's debt-to-capital ratio fluctuated between 0.20 and 0.40 during the period analyzed. The ratio reached its highest point of 0.40 in June 2021 and has since decreased to 0.24 by the end of 2024. This indicates that the company has been reducing its reliance on debt to finance its operations, which is a positive sign for solvency.

3. Debt-to-equity ratio: The debt-to-equity ratio reflects the company's leverage and financial risk. California Resources Corp's debt-to-equity ratio ranged from 0.24 to 0.66, with the highest point in June 2021. The ratio has shown a decreasing trend since then, reaching 0.32 by the end of 2024. This suggests that the company has been effectively managing its debt levels in relation to equity, which is beneficial for long-term solvency.

4. Financial leverage ratio: This ratio measures the extent to which the company uses debt to finance its assets. California Resources Corp's financial leverage ratio has fluctuated between 1.80 and 3.63 over the analyzed period. A lower financial leverage ratio indicates a lower level of financial risk and a stronger solvency position. The company's ratio has shown a decreasing trend after peaking in June 2021, which indicates a more conservative approach to debt management.

Overall, based on the solvency ratios analyzed, California Resources Corp appears to have been effectively managing its debt levels and maintaining a relatively stable and improving solvency position. It is important for investors and stakeholders to continue monitoring these ratios to assess the company's ability to meet its financial obligations in the long term.

Coverage ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Interest coverage	7.13	11.60	5.21	7.47	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

The interest coverage ratio of California Resources Corp has fluctuated significantly over the reported periods, ranging from negative values to positive values. The company's ability to cover interest expenses improved notably from the negative levels in 2020 and early 2021 to positive levels in the latter part of 2021 and throughout 2022. This improvement suggests a better ability to meet its interest obligations and indicates a more favorable financial position. However, it is essential to monitor these ratios closely to ensure sustained positive trends in interest coverage, which can provide insights into the company's overall financial health and risk management strategies.