Corteva Inc (CTVA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.72 | 1.72 | 1.68 | 1.67 | 1.72 |
Corteva Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00, reflecting the company's ability to finance its operations primarily through equity and retained earnings rather than debt.
Furthermore, the financial leverage ratio has been relatively stable around 1.70 over the past five years. This suggests that Corteva has maintained a balanced capital structure with an appropriate mix of debt and equity financing, without over-relying on borrowed funds.
Overall, based on the solvency ratios provided, Corteva Inc appears to have a healthy financial position with low leverage and a strong capacity to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.47 | 4.04 | 19.05 | 79.20 | 26.91 |
The interest coverage ratio for Corteva Inc has shown significant fluctuations over the past five years. In December 2020, the interest coverage ratio was 26.91, indicating that the company generated ample operating income to cover its interest expenses almost 27 times over.
By December 2021, the interest coverage ratio improved significantly to 79.20, reflecting a substantial increase in the ability of Corteva Inc to pay its interest obligations from its operating income. This suggests a strong financial position and lower risk of default due to interest payments.
However, in December 2022, the interest coverage ratio dropped to 19.05, which may indicate a slight deterioration in the company's ability to cover its interest expenses from operating income compared to the previous year.
The trend continued to decline in December 2023 with an interest coverage ratio of 4.04, suggesting a significant decrease in the company's ability to cover interest payments, which may raise concerns about Corteva Inc's financial health and its ability to meet debt obligations comfortably.
By December 2024, the interest coverage ratio slightly improved to 6.47, but it remained relatively low compared to the figures in the previous years, indicating that Corteva Inc may still have some challenges in meeting its interest expenses from operating income.
Overall, the fluctuating trend in the interest coverage ratio over the five-year period suggests that Corteva Inc's ability to cover interest payments has varied, with notable improvements in some years and declines in others, highlighting the importance of monitoring the company's financial performance and debt management strategies.