Dupont De Nemours Inc (DD)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.57 | 1.59 | 1.56 | 1.73 | 1.84 |
Dupont De Nemours Inc has maintained a consistently strong solvency position, as indicated by its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have remained at 0.00 across the years from 2020 to 2024, indicating that the company has no debt relative to its assets, capital, or equity. This signifies a low financial risk and a healthy balance sheet structure.
Furthermore, the financial leverage ratio has shown a declining trend over the period, decreasing from 1.84 in 2020 to 1.57 in 2024. This decreasing trend indicates that the company is relying less on debt to finance its operations and investments compared to its equity. A lower financial leverage ratio suggests greater financial stability and lower financial risk for the company.
Overall, based on the solvency ratios analyzed, Dupont De Nemours Inc appears to have a strong financial position with minimal debt relative to its assets and equity, as well as a decreasing reliance on debt for its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.26 | 2.27 | 4.17 | 3.62 | -2.05 |
Based on the provided data, Dupont De Nemours Inc's interest coverage ratio has exhibited fluctuations over the past five years.
As of December 31, 2020, the interest coverage ratio was -2.05, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses, which poses a substantial risk to creditors.
However, there has been a significant improvement in the interest coverage ratio over the subsequent years. By December 31, 2021, the ratio had increased to 3.62, suggesting that Dupont De Nemours Inc's ability to meet its interest obligations had strengthened. This trend continued into 2022, with the ratio rising to 4.17, reflecting a more robust financial position.
Nevertheless, a slight decline was observed by December 31, 2023, with the interest coverage ratio falling to 2.27. This could indicate a potential strain on the company's ability to cover its interest payments.
The most recent data point, as of December 31, 2024, shows a slight improvement in the interest coverage ratio to 4.26, which suggests that Dupont De Nemours Inc's earnings may be more comfortably covering its interest expenses compared to the previous year.
Overall, while there have been fluctuations in Dupont De Nemours Inc's interest coverage ratio, the general trend has shown improvement in recent years, indicating a better ability to service its interest obligations.