Corteva Inc (CTVA)
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.72 | 1.69 | 1.65 | 1.76 | 1.72 | 1.71 | 1.69 | 1.78 | 1.68 | 1.64 | 1.58 | 1.66 | 1.67 | 1.66 | 1.63 | 1.73 | 1.72 | 1.73 | 1.72 | 1.80 |
Corteva Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 over the past five years. This suggests that the company's assets are primarily financed through equity rather than debt, reducing its financial risk and improving its ability to weather economic downturns.
Additionally, Corteva's financial leverage ratio has been relatively stable, ranging from 1.58 to 1.80 over the same period. This indicates that the company's level of debt relative to its equity has been consistent, with no significant increase in financial leverage that could potentially strain its operations or financial health.
Overall, the solvency ratios demonstrate Corteva's prudent financial management practices and its ability to maintain a healthy balance sheet structure, which is essential for long-term sustainability and resilience in the face of economic challenges.
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 | 7.06 | 5.26 | 6.25 | 5.67 | 6.90 | 8.22 | 10.24 | 18.38 | 21.23 | 41.75 | 60.90 | 76.91 | 87.83 | 71.56 | 51.54 | 32.60 | 23.58 | 18.41 | 14.48 | 7.85 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio implies that the company is more capable of covering its interest payments.
Analyzing the interest coverage of Corteva Inc based on the provided data, we can see a positive trend over the quarters. The interest coverage ratio has been consistently increasing from March 31, 2020, to June 30, 2021, reaching its peak at 87.83 on December 31, 2021. This indicates that Corteva Inc's operating income was significantly higher than its interest expenses during this period.
However, starting from March 31, 2022, the interest coverage ratio began to decline, indicating a decrease in the company's ability to cover its interest payments from its operating income. The ratio dropped to 5.67 on March 31, 2024, which is a significant decrease compared to the peak in December 2021.
As of December 31, 2024, the interest coverage ratio slightly increased to 7.06, but it is still lower than the levels seen in previous periods. This suggests that Corteva Inc may be facing challenges in generating sufficient operating income to cover its interest expenses.
Overall, the trend in Corteva Inc's interest coverage ratio shows fluctuations over the quarters, with a notable decline in recent periods. It is important for the company to monitor and improve its interest coverage ratio to ensure financial stability and meet its debt obligations effectively.