CVR Energy Inc (CVI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.45 | 0.34 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.71 | 0.73 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 2.48 | 2.64 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.56 | 7.76 | 7.06 | 3.90 | 2.80 |
The solvency ratios of CVR Energy Inc provide insight into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.31 in 2019 to 0.46 in 2023. This ratio indicates that approximately 46% of the company's assets are financed through debt, suggesting a moderate level of leverage.
The debt-to-capital ratio has shown some fluctuation over the years, with a peak of 0.75 in 2022 and 2023. This ratio indicates that debt accounts for around 72% of the company's capital structure, highlighting a significant reliance on debt financing.
The debt-to-equity ratio has also varied, peaking at 3.00 in 2021 and 2022 before decreasing slightly to 2.58 in 2023. This ratio indicates that the company has been increasingly leveraging its equity with debt, which could lead to higher financial risk.
The financial leverage ratio has shown a similar trend to the debt-to-equity ratio, peaking at 7.76 in 2022 before decreasing to 5.56 in 2023. This high ratio implies that the company has a significant amount of debt in relation to equity, which may raise concerns about its ability to cover interest payments.
Overall, the solvency ratios of CVR Energy Inc suggest that the company has been utilizing debt as a key source of financing, which could imply higher financial risk and reduced financial flexibility in the long term. Investors and stakeholders should closely monitor these ratios to assess the company's solvency and financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 93.58 | 192.60 | 17.40 | -55.50 | 96.67 |
The interest coverage ratio for CVR Energy Inc has varied significantly over the past five years. In 2023, the interest coverage ratio improved significantly to 21.63, indicating that the company's operating income was more than sufficient to cover its interest expense. This is a positive sign as it shows that the company is able to meet its interest obligations comfortably.
In 2022, the interest coverage ratio was 11.46, which was also a healthy level indicating that the company's operating income was more than 11 times its interest expense. However, in 2021, the interest coverage ratio was a concerning 0.77, suggesting that the company's operating income was just sufficient to cover its interest payments.
In 2020, the interest coverage ratio was negative at -2.19, indicating that the company's operating income was insufficient to cover its interest expense. A negative ratio is a red flag as it implies that the company may have difficulty meeting its interest obligations with its current level of operating income.
Finally, in 2019, the interest coverage ratio improved to 5.65, indicating that the company's operating income was more than five times its interest expense. This was a positive trend compared to the negative ratio in 2020.
Overall, it is important for CVR Energy Inc to maintain a healthy interest coverage ratio to ensure that it can meet its interest payments and demonstrate financial stability to creditors and investors.