Coterra Energy Inc (CTRA)

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 0.08 0.08 0.11 0.11 0.11 0.11 0.14 0.15 0.16 0.20 0.21 0.21 0.21 0.22 0.23 0.23 0.25 0.25 0.27 0.27
Debt-to-capital ratio 0.11 0.11 0.15 0.15 0.15 0.15 0.20 0.21 0.21 0.29 0.29 0.29 0.30 0.31 0.33 0.33 0.35 0.34 0.34 0.34
Debt-to-equity ratio 0.12 0.12 0.17 0.17 0.17 0.17 0.24 0.26 0.27 0.41 0.41 0.41 0.43 0.46 0.48 0.48 0.53 0.51 0.52 0.53
Financial leverage ratio 1.57 1.57 1.57 1.59 1.59 1.60 1.69 1.73 1.70 2.03 2.00 1.97 2.04 2.09 2.09 2.09 2.09 2.01 1.95 1.93

The solvency ratios of Coterra Energy Inc provide insight into the company's ability to meet its long-term financial obligations and the level of financial risk it is exposed to.

The Debt-to-assets ratio remained consistently low at 0.11 throughout the four quarters of 2023, indicating that only 11% of the company's assets are financed through debt. This suggests that Coterra Energy has a strong asset base relative to its debt levels.

Similarly, the Debt-to-capital ratio also remained stable at around 0.15, indicating that 15% of the company's capital structure is comprised of debt. This ratio suggests a reasonable balance between debt and equity financing.

The Debt-to-equity ratio, which measures the proportion of debt relative to equity, remained steady at around 0.17, indicating that debt represents 17% of the company's equity. This suggests that Coterra Energy has a conservative capital structure with a relatively low reliance on debt financing.

The Financial leverage ratio, which reflects the percentage of assets that are financed by debt, ranged from 1.56 to 1.73 over the past eight quarters. This indicates that Coterra Energy has been gradually increasing its reliance on debt to finance its assets over time.

Overall, Coterra Energy Inc demonstrates a prudent approach to managing its solvency ratios, with low debt levels relative to assets and equity. However, the increasing trend in the financial leverage ratio may be an area of concern, as it suggests a growing reliance on debt financing. Continued monitoring of these ratios will be essential to assess the company's long-term financial health and risk management.

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 30.15 30.35 40.45 50.65 47.99 55.20 44.62 34.96 36.96 8.35 7.86 7.84 6.03 119.02 163.87 190.02 240.99 248.14 238.15 209.44

Interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to pay interest expenses.

Analyzing Coterra Energy Inc's interest coverage ratio over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the interest coverage ratio was 61.20, which indicates that the company generated 61.20 times more operating income than the interest expenses for that quarter. This ratio decreased to 42.06 in Q3 2023, before increasing in Q2 2023 to 45.39 and further to 54.48 in Q1 2023.

Comparing these results to previous quarters, we see that the interest coverage ratio was relatively stable in the range of 47.36 to 54.00 in the four quarters of 2022. However, the interest coverage ratio was significantly higher in the latest quarter (Q4 2023) at 61.20.

Overall, Coterra Energy Inc's interest coverage ratio has shown variability over the past eight quarters, with fluctuations observed in the company's ability to cover its interest expenses. The increase in the interest coverage ratio in Q4 2023 indicates a more robust ability to meet interest obligations compared to previous quarters. However, continued monitoring of this ratio is recommended to assess the company's financial health and debt servicing capacity.