CVR Energy Inc (CVI)
Solvency ratios
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.39 | 0.37 | 0.45 | 0.00 | 0.00 | 0.00 | 0.34 | 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 | 0.68 | 0.69 | 0.63 | 0.71 | 0.00 | 0.00 | 0.00 | 0.73 | 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 | 2.13 | 2.22 | 1.71 | 2.48 | 0.00 | 0.00 | 0.00 | 2.64 | 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 | 6.06 | 5.75 | 4.66 | 5.56 | 4.62 | 5.59 | 6.23 | 7.76 | 7.51 | 6.07 | 6.75 | 7.06 | 6.83 | 7.86 | 4.27 | 3.90 | 3.58 | 3.33 | 3.37 | 2.80 |
The solvency ratios for CVR Energy Inc provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. The trend for CVR Energy Inc shows a gradual increase in the debt-to-assets ratio, reaching 0.35 by December 31, 2023. This indicates that the company's reliance on debt to finance its assets has been on the rise, although it decreased slightly by the end of 2024.
2. Debt-to-capital ratio: This ratio reflects the proportion of a company's capital structure that is made up of debt. The trend for CVR Energy Inc shows fluctuations, with a peak of 0.73 by December 31, 2022, before decreasing to 0.68 by the end of 2024. This suggests that the company has been managing its capital structure by balancing debt and equity components.
3. Debt-to-equity ratio: This ratio compares a company's total debt to its shareholders' equity, indicating the level of financial leverage. The trend for CVR Energy Inc reveals an increase in the debt-to-equity ratio over time, peaking at 2.22 by September 30, 2024. This implies that the company has been relying more on debt financing compared to equity.
4. Financial leverage ratio: This ratio measures a company's debt relative to its equity, showing how much debt is being used to support each unit of equity. The trend for CVR Energy Inc fluctuates but generally shows an increasing financial leverage ratio, reaching 6.06 by December 31, 2024. This indicates a higher level of financial risk as the company's debt increases relative to its equity.
Overall, the solvency ratios of CVR Energy Inc demonstrate a mix of trends in debt levels and financial leverage, suggesting a need for careful monitoring to ensure the company's long-term financial stability and ability to meet its obligations.
Coverage ratios
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 10.27 | 41.29 | 70.38 | 93.50 | 309.00 | 223.50 | 268.00 | 240.50 | 191.50 | 209.50 | 88.40 | 17.40 | -13.50 | -50.33 | -55.67 | -55.67 | -27.60 | 11.17 | 57.00 | 96.67 |
Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio suggests a stronger ability of the company to cover its interest expenses with its earnings.
Analyzing the interest coverage ratio of CVR Energy Inc from December 31, 2019, to December 31, 2024, reveals fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio stood at 96.67 on December 31, 2019, indicating a healthy ability to pay interest. However, by September 30, 2020, the ratio dropped significantly to -27.60, indicating that the company's earnings were insufficient to cover its interest payments.
The trend continued to show negative interest coverage ratios through March 31, 2021, reaching a low of -55.67. This negative trend persisted until December 31, 2021, when the ratio improved to 17.40, signifying a partial recovery in the company's ability to cover interest expenses.
From March 31, 2022, onwards, there was a notable improvement in the interest coverage ratio, reaching a peak of 309.00 on September 30, 2023. This significant improvement indicates a strong ability of the company to meet its interest obligations with its earnings. The ratio declined in the subsequent periods but remained positive, with values of 70.38 on March 31, 2024, and 10.27 on December 31, 2024.
Overall, the interest coverage ratio of CVR Energy Inc has experienced fluctuations over the years, with periods of both strength and weakness in its ability to cover interest payments. The recent positive trend in the ratio suggests an improvement in the company's financial health and its ability to service its debt obligations.