Corteva Inc (CTVA)
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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.05 | 0.05 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.01 | 0.00 | 0.00 | 0.00 | 0.06 |
| Debt-to-capital ratio | 0.09 | 0.08 | 0.08 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.03 | 0.00 | 0.00 | 0.00 | 0.08 |
| Debt-to-equity ratio | 0.10 | 0.09 | 0.09 | 0.05 | 0.05 | 0.05 | 0.05 | 0.04 | 0.04 | 0.05 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.03 | 0.00 | 0.00 | 0.00 | 0.09 |
| Financial leverage ratio | 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 | 1.74 | 1.73 | 1.70 | 1.48 |
Corteva Inc's solvency ratios provide insights into its ability to meet its financial obligations and its financial leverage. The debt-to-assets ratio indicates the proportion of the company's assets financed by debt, with lower ratios generally being favorable. Corteva's debt-to-assets ratio has shown some fluctuations over the past eight quarters, ranging from 0.03 to 0.14. The company has maintained relatively low levels of debt compared to its assets, with the latest ratio at 0.06 indicating conservative debt management.
The debt-to-capital ratio measures the company's financial leverage by comparing total debt to total capital (debt and equity). Corteva's debt-to-capital ratio has ranged from 0.05 to 0.19 over the same period, with a decreasing trend towards the latest quarter at 0.09. This suggests that Corteva relies less on debt financing in relation to its total capital.
The debt-to-equity ratio assesses the proportion of debt used to finance the company's operations relative to shareholders' equity. Corteva's debt-to-equity ratio has varied between 0.05 and 0.23, with the latest ratio standing at 0.10. The trend shows a moderate level of debt to equity, indicating that the company utilizes a mix of debt and equity for funding its operations.
Lastly, the financial leverage ratio measures the extent to which the company uses debt to finance its assets. Corteva's financial leverage ratio has ranged from 1.58 to 1.78, with the latest ratio at 1.72. This indicates that the company has been using debt as part of its capital structure, with the latest ratio showing a slight increase compared to previous quarters.
In conclusion, Corteva Inc's solvency ratios suggest a prudent approach to debt management and a balanced use of debt and equity in its capital structure. The ratios have shown some variability over the quarters, reflecting the company's evolving financing strategies and financial position.
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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -8.71 | -8.47 | -10.77 | -16.81 | -24.52 | -41.49 | -54.15 | -77.91 | -87.30 | -14.84 | -14.94 | -24.81 | -29.44 | -25.68 | -23.73 | -11.71 | -10.36 |
The interest coverage ratio for Corteva Inc was not available for Q4 2023, Q2 2023, and Q1 2023. However, in Q3 2023, the interest coverage ratio was 418.40. This indicates that Corteva's operating income was significantly higher than its interest expenses in that quarter, reflecting a strong ability to meet its interest obligations. It is important to note that without data for the other quarters, it is challenging to assess the trend or consistency of Corteva's interest coverage ratio over time. It would be beneficial to monitor future financial statements to evaluate the company's ability to continue covering its interest expenses effectively.