Corteva Inc (CTVA)

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at Corteva Inc's solvency ratios over the past five years, we can see a consistent and favorable trend.

The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Corteva's debt-to-assets ratio has been relatively low, steadily increasing from 0.00 in 2019 to 0.06 in 2023. This indicates that the company relies minimally on debt to fund its assets, which is positive for long-term solvency.

The debt-to-capital ratio reflects the percentage of a company's capital that is financed by debt. Corteva's debt-to-capital ratio has also shown an increasing trend from 0.00 in 2019 to 0.09 in 2023. While the ratio has increased, it remains at a moderate level, indicating a balanced capital structure with a reasonable reliance on debt.

The debt-to-equity ratio measures the proportion of a company's equity that is financed by debt. Similar to the other ratios, Corteva's debt-to-equity ratio has been on an upward trajectory, from 0.01 in 2019 to 0.10 in 2023. Despite this increase, the ratio remains at a manageable level, suggesting that the company has sufficient equity to cover its debt obligations.

The financial leverage ratio indicates the extent to which a company is using debt to finance its assets. Corteva's financial leverage ratio has fluctuated slightly over the years but has remained within a relatively stable range, with a slight increase to 1.72 in 2023. This ratio suggests that Corteva is effectively utilizing debt to support its operations without taking on excessive financial risk.

Overall, Corteva Inc's solvency ratios demonstrate a conservative approach to debt management, with a gradual increase in leverage over the years but maintaining a strong financial position. This trend indicates a healthy balance between debt and equity financing, which bodes well for the company's long-term solvency and financial stability.

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Coverage ratios

The interest coverage ratio for Corteva Inc is not available for the years 2020, 2021, 2022, and 2023 in the table provided. However, based on the data available, we can see that the interest coverage ratio for Corteva Inc was 7.47 in 2019. The interest coverage ratio is a financial metric used to assess a company's ability to cover its interest expenses with its operating income.

A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating profits. Conversely, a lower ratio may suggest that the company could potentially have difficulty covering its interest costs.

Given that the interest coverage ratio is not available for the recent years, it is challenging to evaluate Corteva Inc's current ability to service its interest payments relative to previous years. It would be beneficial to access the actual interest expenses and operating income figures for the missing years to calculate the interest coverage ratio accurately and gain a more comprehensive understanding of Corteva Inc's financial health in terms of its ability to cover interest expenses.