CVR Energy Inc (CVI)

CVR Energy Inc's solvency ratios have shown some fluctuations over the years. The Debt-to-assets ratio remained relatively stable at 0.00 for 2020 and 2021 but increased to 0.34 in 2022, indicating that 34% of the company's assets were financed by debt that year. This ratio further increased to 0.45 in 2023 before decreasing slightly to 0.35 in 2024, suggesting a moderate level of debt compared to the company's total assets.

The Debt-to-capital ratio was also stable at 0.00 for 2020 and 2021 but saw a significant increase to 0.73 in 2022, indicating that 73% of the company's capital was funded by debt that year. This ratio then slightly decreased to 0.71 in 2023 and 0.68 in 2024, suggesting a slight improvement in the company's capital structure over those years.

The Debt-to-equity ratio remained at 0.00 for 2020 and 2021 before rising to 2.64 in 2022, which indicates that the company's debt was 2.64 times its equity in that year. This ratio decreased to 2.48 in 2023 and further to 2.13 in 2024, showing a slight reduction in the company's reliance on debt to finance its operations.

The Financial leverage ratio, which measures the company's financial leverage, was at 3.90 in 2020, showing that CVR Energy Inc had significant leverage that year. The ratio then increased to 7.06 in 2021 and further to 7.76 in 2022, indicating higher financial risk due to increased debt levels. However, the ratio decreased to 5.56 in 2023 and 6.06 in 2024, suggesting a slight improvement in the company's financial leverage position in those years.

In summary, CVR Energy Inc's solvency ratios have shown fluctuations, with varying levels of debt and leverage over the years. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its financial obligations and manage its debt levels effectively.

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Coverage ratios

Based on the provided data, CVR Energy Inc's interest coverage ratio has been fluctuating significantly over the past five years. As of December 31, 2020, the company had a worrying interest coverage ratio of -55.50, indicating that its operating income was not sufficient to cover its interest expenses, raising concerns about its financial health and ability to meet debt obligations. However, there was a remarkable improvement in the interest coverage ratio by December 31, 2021, reaching a positive 17.40, suggesting that the company's operating income had increased sufficiently to cover its interest expenses.

The trend continued to improve significantly in the following years, with the interest coverage ratio soaring to 192.60 by December 31, 2022. This sharp increase indicates that CVR Energy Inc's financial standing strengthened considerably, with ample operating income not only to cover its interest expenses but also to demonstrate a robust ability to meet debt obligations comfortably.

By December 31, 2023, the interest coverage ratio remained high at 93.58, reflecting continued strong financial performance and stability. However, there was a notable decline in the interest coverage ratio by December 31, 2024, dropping to 8.29. This decrease may raise some concerns about the company's ability to cover its interest payments with its operating income, signaling a potential strain on its financial position.

In conclusion, while CVR Energy Inc has shown significant improvements in its interest coverage ratio over the years, the recent decline in 2024 suggests a need for careful monitoring of its financial performance to ensure sustainable debt management and liquidity.