Coterra Energy Inc (CTRA)

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 0.10 0.10 0.10 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
Debt-to-capital ratio 0.21 0.14 0.14 0.14 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
Debt-to-equity ratio 0.27 0.16 0.16 0.16 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
Financial leverage ratio 1.65 1.54 1.59 1.60 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

Coterra Energy Inc has shown a consistent improvement in its solvency ratios over the past few years, indicating a strong financial position. The Debt-to-assets ratio has steadily decreased from 0.23 in March 2020 to 0.08 in December 2023, with a slight increase to 0.16 by December 2024. This indicates that the company's level of debt relative to its total assets has declined, reflecting a better ability to cover its obligations with its asset base.

Similarly, the Debt-to-capital ratio has also exhibited a downward trend, from 0.33 in March 2020 to 0.21 by December 2024. This trend suggests that Coterra Energy has been reducing its reliance on debt financing in relation to its total capital structure, which is a positive sign for investors and creditors.

Moreover, the Debt-to-equity ratio has followed a similar trajectory, decreasing from 0.48 in March 2020 to 0.27 by December 2024. This demonstrates that the company has been using less debt relative to its equity, resulting in a stronger financial foundation and lower financial risk.

Additionally, the Financial leverage ratio has decreased consistently over the years, indicating a reduction in the company's overall financial risk. The ratio declined from 2.09 in March 2020 to 1.65 by December 2024, reaffirming Coterra Energy's improved financial leverage and stability.

Overall, the declining trends in these solvency ratios reflect Coterra Energy Inc's efforts to strengthen its financial position and manage its capital structure prudently, positioning the company favorably in terms of solvency and financial risk management.

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 127.73 50.64 32.93 23.57 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

Coterra Energy Inc's interest coverage ratio has fluctuated over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT).

The interest coverage ratio stood at a healthy level of 190.02 on March 31, 2020, indicating a strong ability to cover interest expenses. However, this ratio decreased to 6.03 by December 31, 2020, suggesting a significant decline in the company's ability to cover interest payments.

From March 31, 2021, to June 30, 2022, the interest coverage ratio remained relatively stable in the range of 7.84 to 44.62, indicating some recovery in the company's ability to meet interest obligations. The ratio improved further to 127.73 by December 31, 2024, which indicates a significant improvement in the company's ability to cover its interest expenses compared to the low point in 2020.

Overall, Coterra Energy Inc's interest coverage ratio has shown fluctuations over the period, with both strengths and weaknesses in managing its interest obligations. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and ability to service its debt.